Here’s my translation

Alan

Hann gekk út er þeir komu í tún og fagnar þeim og býður allan greiða slíkan sem þeir vilja þegið hafa.
He walked out when they came into (the) home-meadow and greets them and offers all entertainment such as they want to have received.

Varla náðu þeir að stíga af baki, svo var bóndi beinn við þá.
Scarcely were they able to dismount (lit: step off (horse) back), (the) farmer was so hospitable towards them.

Þorbjörn mælti: "Mikið er nú um beina þinn og væri mikið undir að þú efndir þetta allt vel er þú hefir heitið okkur."
Þorbjörn spoke: “(It) pleases (us) much (lit: (there) is much, see under um, Z9) now concerning your hospitality and (it) would-be worth much (lit: much would-be  under (it), see undir, z4) that you would-prepare this completely well which you have promised us.”

"Veit eg erindi þitt að féið mun hér skulu eftir vera og skortir hér eigi jörð nóga og góða."
“I know your errand that the-cattle will here be required to (infinitive of skulu?) be after(stay behind) and is-lacking not here land enough and good.”

Þorbjörn mælti: "Þiggja munum við það."
Þorbjörn spoke: “We will accept that.”

Þá víkur hann Þorkatli hjá húsunum og mælti: "Tíðindi mikil eru að segja."
Then he moves to Þorkell by the farm-buildings (farmstead) and spoke: “Great tidings are to say (ie to speak of).”

Þorkell spurði hver þau væru.
Þorkell asked what they (ie those tidings) were.

"Blund-Ketill bóndi var brenndur inni í nótt," sagði Þorbjörn.
“Farmer Blund (Dozy)-Ketill was burned inside tonight (ie last night),” said Þorbjörn.

"Hverjir gerðu það níðingsverk?" sagði Þorkell.
“Who (plural) did that villainy (lit: villain’s-deed)?” said Þorkell.

Þorbjörn sagði þá allt sem farið hafði "og þarf Hersteinn nú þinna heillaráða."
Þorbjörn said then everything that had gone (ie happened) “and Hersteinn now needs your good-advice.”

Þorkell mælti: "Eigi þætti mér ráðið hvort eg mundi svo skjótt á boð brugðist hafa ef eg hefði þetta vitað fyrr.
Þorkell spoke: “(It) would-seem to me not decided (ráða, z6) (ie it´s a moot point?) whether (hvárt) I would so speedily have revealed (my) offer (cf bregðast á beina við e-n) if I had known this before-hand.

En mínum ráðum vil eg nú láta fram fara og förum nú til matar fyrst."
But (And) for my advice I want now to cause to go forward (proceed) and let-us-go now to food first (let´s have something to eat first).”

Þeir játuðu því. Þorkell trefill var þá mjög fámálugur og nokkuð hugsi. Og er þeir voru mettir lætur hann taka hesta þeirra.
They said-yes to that. Þorkell ‘Rag’ was then very reticent and somewhat meditative. And when they were sated (having eaten their fill) he causes to take their horses.

Síðan taka þeir vopn sín og stíga á bak.
After-that they take their weapons and mount (lit: step onto (horse) back).

Ríður Þorkell fyrir þann dag og mælti áður að vel skyldi geyma fjárins í haganum en gefa vel því sem inni var.
Þorkell rides in front that day and spoke before (his departure) that (they) should well mind the cattle in the pasture but (and) feed (ie give fooder to, gefa, Z4) well those which were inside.

Þeir ríða nú út á Skógarströnd á Gunnarsstaði. Það er innarlega á ströndinni.
They ride now out to Skógarströnd (Forest’s-Border (shore?) to Gunnarsstaðr (Gunnar’s-Place (Stead), That is far-inward into the-border (shore?).

Þar bjó sá maður er Gunnar hét og var Hlífarson, mikill maður og sterkur og hinn mesti garpur.
There lived that man who was-called Gunnar and (he) was Hlíf’s-son, a tall man and strong and the greatest man-of-boldness.

Hann átti systur Þórðar gellis er Helga hét. Gunnar átti tvær dætur. Hét önnur Jófríður en önnur Þuríður.
He had (in marriage) (the) sister of Þorðr ‘Roarer’ who was-called Helga. Gunnar had (not in marriage!) two daughters. (The) first was called Jófríðr but (and) the other Þuríðr.

Þeir koma þar síð dags, stíga af baki fyrir ofan hús. Vindur var á norðan og heldur kalt.
They come there late in (the) day, dismount (lit: step off (horse) back) above (the) house. The wind was (ie blew) from-(the)-north and (was) 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.
Þorkell walks to (the) door and knocks but (and) the house-carle (manservant) walks to (the) door and greets that-one (ie him, dat sg of sá) well who was (had) come and asks who he was.