Here’s my translation

Alan

Og að kveldi eins dags kemur landseti Blund-Ketils og segir sig vera í heyþroti og krefur úrlausna.
And at the evening of one day a tenant of Blund (Dozy)-Ketill comes and says himself to be in a hay-shortage and craves release-from-difficulty (help, exemption, a waiver?, órlausn, Z2).

Bóndi svarar: "Hverju gegnir það? Eg þóttist svo til ætla að hausti að eg hugði að vel mundi hlýða."
(The) farmer answers: “That amounts (gegna, Z4) to what (to what extent, how much help?)?  I bethought-myself to expect of (from) (the) harvest-season such (an amount) that I believed that (it) would well be-proper.”

Sjá svarar að færra var slátrað en hann sagði.
This-one (ie he) answers that less (fewer) was (were) slaughtered than he said.

Blund-Ketill sagði: "Við skulum eiga kaup saman. Eg mun leysa þig úr vandræði þessu um sinn
Blund (Dozy)-Ketill said: “We shall have a bargain (make a deal) together. I will release (set free, exempt) you out of this difficulty once (for this one time, sinn)

en þú seg þetta engum manni því að eg vil eigi venja menn upp á mig, allra helst síðan þér hafið þó eigi haft mín tillög."
but you say (imperative) this to no man (person) because I want not to accustom men (people) up on me (to get men into the habit of seeking help from me?), most of all since you have still not had my contributions (help).”

Sá fór heim og sagði sínum vin að Blund-Ketill sé afbragð annarra manna í sínum viðskiptum og kvað hann sig úr vandræði leyst hafa.
That-one (ie He) journeyed home and said to his friend that Blund (Dozy)-Ketill is a paragon of other men (persons) in his dealings and he declared himself to have (been) released (set free) from (out-of) trouble.

En sá sagði sínum vin og verður það svo víst um allt héraðið.
But (and) that-one (ie he) said to his friend and that became thus known (víss, Z3) around all the-district.

Líður stund og kemur gói. Þá koma tveir landsetar hans og segja sig í heyþroti.
Time passes  and (it) comes to (the month of) Gói (mid-Feb to mid-Mar). Then two of his tenants come and say themselves (to be) in a hay-shortage.

Blund-Ketill svarar: "Illa hafið þér gert að þér hafið af brugðið mínum ráðum því að það er þann veg
Blund (Dozy) Ketill answers: “You have done badly that you have given-up (ignored, bregða. Z4) my commands, because that is that way (thus),

þó að vér höfum hey mikil þá höfum vér og fé því fleira. Nú ef eg miðla yður þá hefi eg ekki til míns fjár. Er nú hér um að kjósa."
even though we have much hay, still we have also therefore more cattle. Now if I share with you, then I have nothing for my cattle. (One) is now here to choose between (these).”

Þeir ala á málið og tjá vesöld sína. En honum þótti hörmulegt að heyra á þeirra veinan
They urge the matter (see ala á mál, Z5) and relate their misery. But (And) (it) seemed to him sad to listen to their wailing

og lét reka heim fjóra tigu hrossa og hundrað og lét drepa fjóra tigu hrossa þau er verst voru en gaf landsetum sínum það fóður
and (he) caused to drive home forty (four tens of) horses and a hundred and caused to kill forty (four tens of) horses, those which were worst (ie in worst condition) and gave to his tenants that fodder

sem hrossunum var ætlað áður. Fara þeir heim fegnir.
which was before intended for the horses. They journey home glad.

Veturinn gerist því verri sem meir leið á og verður örkola fyrir mörgum.
The winter became the (see því, Z5) worse the more (it) passed on (drew to a close) and many (people) are at the end of their resources (lit: (it) becomes burnt out for many,see örkola, Z1)

5. kafli
Chapter 5

Nú kemur einmánuður og koma tveir landsetar Blund-Ketils.
Now comes (the) last-month-of-winter (part-of-Mar and Apr) and two tenants of Blund (Dozy)-Ketill come.

Þeir áttu sér hóti helst nokkurs kosti í fémunum en þó voru þeir nú í heyþroti og biðja hann úrlausna.
They had for themselves a great deal more in some wise (they were more well off than others?) in property but still they were now in hay-shortage and ask him for release-from-difficulty (help, exemption).

Hann svarar þá og kveðst eigi til hafa enda lést hann eigi vilja drepa fleira fé. Þeir fréttu ef hann viti nokkura þá menn er hey hefðu til sölu.
He answers then and declares-of-himself not to have (it) at hand (hafa til e-t, Z14) and-moreover he declared-of himself (látast, Z13) not to want to kill more cattle. They enquire if he knows anyone those men (persons) who had hay for sale.

Hann kveðst eigi víst vita.
He declared-of-himself certainly not to know.