Here’s my translation

Alan

Blund-Ketill svarar: "Þar sem vér berum eigi verra mál til en Oddur þá kann vera að oss falli það létt."
Blund (Dozy)-Ketill answers:  „Whereas we carry towards (it) (ie bring to bear?)not a worse case than Oddr, then (it) may be that that should-fall lightly upon us (e-m fellr e-t létt, falla, Z10).“

Nú líður nóttin en þegar um morguninn snemma lætur Blund-Ketill safna hrossum úr haga
Now the-night passes but at-once the-next-morning early Blund (Dozy)-Ketill causes to gather horses out of (the) grazing-field

og er þá búin ferðin og rekur Hersteinn hundrað hrossa í móti kaupmönnum og þurfti einkis á bú að biðja.
and is then the-journey (expedition) ready (to go) and Hersteinn drives a hundred horses to a meeting with (ie to meet) (the) merchants (chapmen) and (it) wanted to ask of nothing on the farm (farm supplies) (ie there was plenty of everything, cf expression und bú, Z3)).

Hann kemur út þangað og sagði Erni tillag föður síns.
He comes out thither and said to Örn (the) advice of his father.

Örn kvaðst gjarna þenna kost þiggja vilja en kvaðst þó hyggja að þeir feðgar mundu fá óvináttu annarra manna fyrir þetta.
Örn declared-of-himself willingly to want to accept this choice but declared-of-himself nevertheless to believe that that father-and-son-combination would get (the) enmity of other persons (men) for (ie as a result of) this.

Hersteinn kvað þá eigi verða farið að því.
Hersteinn declared then not to become (be) bothered by that (ie he couldn´t give a rat´s, fara at e-u, Z18).

Örn mælti: "Þá skulu hásetar mínir flytja sig í önnur héruð og er þó ærið í ábyrgð þó að vér séum eigi allir í einu héraði."
Örn spoke: “Then my oarsmen shall convey themselves to another district and (there) is still sufficient in responsibility (ie I suspect this means “enough people with responsibility remain here” but I note, cf hafa mikit í ábyrgð, under ábyrgð, there is still enough at stake) even-though we are not all in the one district.”

Hersteinn flytur nú Örn heim með sér og varning hans og skilst eigi fyrr við en allir kaupmenn eru í brottu og búið um skip og öllu til skila komið.
Hersteinn conveys now Örn home with him and his wares and parts not with (them) before all (the) merchants are away and (they had) prepared regarding (the) ship (ie they had secured the ship) and put everything in order (see koma e-u til skila. Under skil, Z3)-

Blund-Ketill tekur afar vel við Erni. Sat hann þar í góðum fagnaði.
Blund (Dozy)-Ketill receives Örn exceedingly well. He sat (stayed) there in good hospitality.

Komu nú tíðindi þessi fyrir Odd hvað Blund-Ketill hefir ráðs tekið og tala menn nú um að hann hafi sýnt sig í mótgangi við hann.
These tidings come before (ie reach) Oddr, what (by way of) counsel/plan Blund (Dozy)-Ketill has taken (ie what approach he has taken) and persons (men) talk about (it) that he has shown himself (to be) in opposition with him.

Oddur svarar: "Kalla má það svo en þar er sá maður er bæði er vinsæll og kappsamur. Þó vil eg enn vera láta svo búið."
Oddr answers: “(One) may call (declare) that so but there is that man (person) who is both popular and headstrong. Yet I want still to let (it) be (stay) as-matters-stand.”

Og er nú enn kyrrt.
And (it) is now still quiet.


4. kafli
Chapter 4

Sumar þetta var lítill grasvöxtur og eigi góður fyrir því að lítt þornaði og varð alllítil heybjörg manna.
This summer (there) was little growth-of-grass and not good (for any growth that there actually was) because (it, the grass) little (ie hardly at all) dried-out and (the) stores of hay of people (men) became (were) very-little.

Blund-Ketill mælti um haustið við landseta sína og segir að hann vildi heyleigur hafa á öllum löndum sínum:
Blund (Dozy)-Ketill spoke during the-autumn with his tenants and says that he wants to have rent-paid-in-hay on all his estates:

"Eigum vér mart fé ganganda en hey fást lítil.
“We have much walking cattle (ie live-stock) but small stores of hay (neut plural) are-obtained.

Eg vil og ráða fyrir hversu miklu slátrað er í haust á hverju búi allra minna landseta og mun þá vel hlýða."
I want also to command how much is slaughtered this autumn on each farm of all my tenants and (how much) will then be well permissible (hlýða, Z3?)

Nú líður sumar og kemur vetur og er snemma nauðamikill norður um Hlíðina en viðbúningur lítill.
Now summer passes and winter comes and early is very-severe north across Hlíðin (The-Slope) but (there was) little preparation (for it?).

Fellur mönnum þungt. Fer svo fram um jól. Og er þorri kemur þá ekur hart að mönnum og eru margir þá upp tefldir.
(It) falls heavily for people (men) (ie The people suffer). (It) goes forward (ie continues) during Yule. And when Þorri (the 4^th winter month) comes, then (it) drives hard for the people (men) )ie they are in dire straits, aka, Z7) and many are then deprived-of-what they have (tefla upp, Z3).