Hann gekk út er þeir komu í tún og fagnar þeim og býður allan greiða slíkan sem þeir vilja þegið hafa. 

He was going out when they came in the yard and he greets them and invites (them) for all the hospitality such as they would have accepted.

Varla náðu þeir að stíga af baki, svo var bóndi beinn við þá.

They scarcely were able to get off their horses, so the owner was hospitable then hospitalbe.

Þorbjörn mælti: "Mikið er nú um beina þinn og væri mikið undir að þú efndir þetta allt vel er þú hefir heitið okkur."

THorbjorn said: "It is much now concerning your hospitality and it were woth much much that you fullfil this all well when you have called us."   (Z. undir I 4 -- væri oss mikit u., at vér fengim liðsinni hans, it were worth much to us to get his help)

"Veit eg erindi þitt að féið mun hér skulu eftir vera og skortir hér eigi jörð nóga og góða."

"I know your mission the the property will be left here and sufficent and good land is not lacking here.    (Z. vera 10 - vera eptir = to be left, remain)

Þorbjörn mælti: "Þiggja munum við það."

Thorbjorn said: "We will accept that."

Þá víkur hann Þorkatli hjá húsunum og mælti: "Tíðindi mikil eru að segja."

He then turns to Thorkatl beside the houses and said: "Great news is to be told."  (I have got a big story for you to hear.)

Þorkell spurði hver þau væru.

Thorkell asked what it would be.

"Blund-Ketill bóndi var brenndur inni í nótt," sagði Þorbjörn.

"Farmer Blund-Ketill was burned inside during the night," Thorbjorn said.

"Hverjir gerðu það níðingsverk?" sagði Þorkell.

"Who did this dastardly-dead?" said Thorkel.

Þorbjörn sagði þá allt sem farið hafði "og þarf Hersteinn nú þinna heillaráða."

Thorbjorn then said all as it had gone "and Hersteinn is now lacking your good advice."

Þorkell mælti: "Eigi þætti mér ráðið hvort eg mundi svo skjótt á boð brugðist hafa ef eg hefði þetta vitað fyrr. 

Thorkel said: "It didn't seem to me advised if I would so soon have failed at an offer if I had known this before.

En mínum ráðum vil eg nú láta fram fara og förum nú til matar fyrst."

But I will now have my advice go forward and we first go to food now."

Þeir játuðu því. 

They agreed with that.

Þorkell trefill var þá mjög fámálugur og nokkuð hugsi. 

Thorkell "tatter" was then very reticent and thoughtful.

Og er þeir voru mettir lætur hann taka hesta þeirra. 

And when they were full, he had their horses taken.

Síðan taka þeir vopn sín og stíga á bak. 

He then takes their weapons and gets on the horse.

Ríður Þorkell fyrir þann dag og mælti áður að vel skyldi geyma fjárins í haganum en gefa vel því sem inni var.

Thorkel rides before that day (before daylight?) and said previously that (someone) should well mind the livestock in the pasture and feed those well who were inside.

Þeir ríða nú út á Skógarströnd á Gunnarsstaði. 

They now ride out to Forest-coast at Gunnarstown.

Það er innarlega á ströndinni. 

It (Gunnarsstaði) is far inward on the beach.

Þar bjó sá maður er Gunnar hét og var Hlífarson, mikill maður og sterkur og hinn mesti garpur. 

A man lived there who was named Gunnar and he was Hlifar's son, a large, strong man and the most dauntless.

Hann átti systur Þórðar gellis er Helga hét. 

He married Thord's "Bellow" sister, who was named Helga.

Gunnar átti tvær dætur. 

Gunnar had two daughters.

Hét önnur Jófríður en önnur Þuríður.

One was named Jofridur and the other Thuridur.

Þeir koma þar síð dags, stíga af baki fyrir ofan hús. 

They arrived there late in the day, get off their horses down over the house.

Vindur var á norðan og heldur kalt. 

The wind blew from the north, and rather cold.

Þorkell gengur að durum og klappar en húskarl gengur til hurðar og heilsar vel þeim sem kominn var og spyr hver hann væri.

Thorkell goes to the door and knocks, and a house-servant goes to the door and greets them well as it had ("var" is singular, so it can't be referring to "them." Not sure what exactly it is referring to) and asks who he was.