> Þenna dag hlutu þeir búðarvörð Björn Breiðvíkingakappi og
> Þórður blígur og skyldi Björn gera eld en Þórður taka
> vatn.

> This day they, Bjorn Breidvikingkappi and Thordr “starer”,
> had allotted to them cooking duties, and Bjorn does (the)
> fire and Thordr takes (the) water.

This day it was their turn, Björn Breiðvíkingakappi and Þórð
blígr, to do the cooking, and Björn was to make [the] fire
and Þórð to fetch water.

> Og er eldurinn var ger lagði reykinn upp í skarðið sem
> Snorri hafði getið til.

> And when the fire was done, the smoke up in the mountain
> pass as Snorri had guessed.

And when the fire was made, the smoke lay up in the pass as
Snorri had guessed.

> Gekk Egill þá ofan eftir reykinum og stefndi til skálans.

> Egill then went down following the smoke and made for the
> hut.

Then Egil went down through the smoke and made for the hut.

> Þá var enn eigi lokið leikinum.

> The games were still not over then.

The games were not yet over then.

> En dagurinn var mjög á liðinn og tóku eldarnir mjög að
> brenna en skálinn var fullur af reyk.

> But the day was very much drawn to a close and the fires
> began to burn and the hut was full of smoke.

But the day was far spent, and the fires began to burn
greatly, and the hut was full of smoke.

> Og stefnir Egill þangað.

> And Egill makes his way there.

And Egil makes his way thither.

> Hann hafði stirðnað mjög á fjallinu.

> He had become very stiff on the mountain.

He had become very stiff on the fell.

> Egill hafði skúfaða skóþvengi, sem þá var siður til, og
> hafði losnað annar þvengurinn og dragnaði skúfurinn.

> Egill had pushed aside a latchet, as was then a custom,
> and had loosened the other latchet and dragged the tassel.

Egil had tasselled shoelaces, as was then [the] custom, and
the other lace had come loose, and the tassle dragged.

<Skúfaða skóþvengi> is the accusative plural of <skúfaðir
skóþvengir> 'tasseled shoelaces', of which the nom. singular
is <skúfaðr skóþvengr>.

> Gekk þrællinn þá inn í forhúsið.

> The thrall went inside to the porch.

Then the thrall went into the porch.

> En er hann gekk í aðalskálann vildi hann fara hljóðlega
> því að hann sá að þeir Björn og Þórður sátu við eld og
> ætlaði Egill nú á lítilli stundu að vinna sér til ævinlegs
> frelsis.

> And when he went into the main hall, he wanted to go
> silently because he saw that they, Bjorn and Thordr, sat
> by a fire and Egill intended now in a little while to win
> himself everlasting freedom.

But when he went into the main hut, he wanted to go
silently, for he saw that Björn and Þórð sat by [the] fire,
and Egil intended in a little while now to win for himself
everlasting freedom.

> Og er hann vildi stíga yfir þröskuldinn þá sté hann á
> þvengjarskúfinn þann er dragnaði.

> And when he wanted to step over the threshold, then he
> stepped on the latchet-tassle, that which was dragging.

And when he wished to step over the threshold, he stepped on
the tassle of the shoelace that is dragging.

Another edition has a footnote here:

Þvengir voru í fornöld oft mjög langir og voru þá vafðir
að legg. Þeir höfðu stundum til skrauts annaðhvort skúfa
eða hnappa á endunum.

Shoelaces were often very long in the old days and were
therefore wrapped around the leg. For decoration they
sometimes had either tassles or buttons on the ends.

> Og er hann vildi hinum fætinum fram stíga þá var skúfurinn
> fastur og af því reiddi hann til falls og féll hann innar
> á gólfið.

> And when he wanted to step his feet forward, then the
> tassle was stuck and therefore he started (?) to fall and
> he fell inside on the floor.

And when he wished to step forward with the other foot, the
tassle was stuck fast, and so he took a tumble [‘[it] tossed
him to a fall’], and he fell further in onto the floor.

<Hinum> is the demonstrative pronoun <hinn> 'the other', not
the definite article <hinn>. Baetke actually has the
present tense version <reiðir e-n til falls> 'someone takes
a tumble, falls'; the closest sense in Zoëga is Z4. <Innar>
is the comparative, 'further in(side)'.

> Varð það svo mikill dynkur sem nautsbúk flegnum væri
> kastað niður á gólfið.

> It was so much noise as (if) a flayed cattle body were
> thrown down on the floor.

That was as great a din as if a flayed cow’s trunk had been
thrown down onto the floor.

> Þórður hljóp upp og spurði hvað fjanda þar færi.

> Thordr jumped up and asked what devil went there.

Þórð leaped up and asked what fiend went there.

It could be 'enemy' rather than 'fiend, devil'.

> Björn hljóp og upp og að honum og fékk tekið hann áður
> hann komst á fætur og spyr hver hann væri.

> Bjorn jumped up and ran to him and got him before he could
> get to (his) feet and asks who he might be.

Björn also leaped up and at him [= Egil] and was able to
seize him before he got to his feet and asks who he might
be.

This is <fá> + past part. 'to be able to ...'.

> Hann svarar: "Egill er hér, Björn félagi," sagði hann.

> He answers: “Egil, here, Bjorn's partner,” he said.

He answers: ‘Egil is here, Björn, mate,’ he said.

'Björn’s partner' would be <félagi Bjarnar>.

> Björn spurði: "Hver er Egill þessi?"

> Bjorn asked: “Who is this Egill?”

Björn answered: ‘Who is this Egil?’

> "Þetta er Egill úr Álftafirði," segir hann.

> “This is Egil from Alftafirth,” he says.

‘This is Egil from Álptafjörð,’ he says.

> Þórður tók sverð og vildi höggva hann.

> Thordr took a sword and wanted to put him to death.

Þórð took [his] sword and wanted to kill him.

> Björn tók þá Þórð og bað hann eigi svo skjótt höggva
> manninn "viljum vér áður hafa af honum sannar sögur."

> Bjorn then took Thord and asked him not to so soon put the
> man to death “we want first to have from him a true
> story.”

Björn then grabbed Þórð and told him not to kill the man so
quickly – ‘first we want to get from him the true story.’

It might be 'asked' rather than 'told', but 'told' seems to
me a bit more likely.

> Settu þeir þá fjötur á fætur Agli.

> They then put fetters on Egill's feet.

Then they placed fetters on Egil’s legs.

> En um kveldið er menn komu heim til skála segir Egill svo
> að allir menn heyrðu hversu ferð hans hafði ætluð verið.

> And during the evening when men came home to (the) hut,
> Egill tells so that all men heard how his journey had
> intended to be.

And in the evening, when folks came home to [the] huts,
Egil says, so that everyone heard, how his journey had been
intended [i.e., what its purpose had been].

> Sat hann þar um nóttin en um morguninn leiddu þeir hann
> upp í skarðið, það heitir nú Egilsskarð, og drápu hann
> þar.

> He sat there during the night, and during the morning the
> led him up in the mountain pass, that is now called
> Egill's pass, and killed him there.

He sat there through the night, and in the morning they led
him up into the pass that is now called Egilsskarð and
killed him there.

Brian