Here’s my translation

Alan

Vaði hét maður. 
(There) was a person (man) called Vaði.

Hann var skáld gott. 
He was a fine skaldic-poet.

Hann var frændi Odds og kom út með honum. 
He was a kinsman of Oddr and came out (ie to Iceland) with him.

Hann bjó á Skáldsstöðum í Berufirði. 
He lived at Skáldsstaðir (Poet’s-Steads) in Berufjörðr (Bera’s-Fjord)

Óttar og Æsa voru börn hans og voru bæði mannvænleg.
Óttar and Æsa were his children and both were promising.

2. kafli
Chapter 2

Þá er þessir hinir ungu menn óxu upp er nú voru nefndir lögðu þeir leika með sér á Berufjarðarísi og var með þeim fóstbræðralag mikið. 
Then when these, the young people (men) who now were named, grew up, they appointed (fixed, leggja Z5) games between themselves at Berufjarðaríss (Bera’s-Fjord’s-Ice (beru-fjarðar-íss)) and a great foster-brotherhood existed between them.

Þórir Oddsson var sterkastur jafn gamall og allar íþróttir hafði hann umfram sína jafnaldra. 
Þórir Oddr´s-son was strongest equal old (within his age group?) and he had all accomplishments above-and-beyond those-the-same-age-(jafnaldri, noun) as-himself.

Ketilbjörn gekk næst honum um allan vaskleik. 
Ketilbjörn went (ie was ranked) next to him regarding all games-of-manliness.

Þeir tóku fiska úr vatninu og báru í læk þann er þar er nær og fæddust þeir þar. 
They caught fish out-of the water (lake?) and carried (them) to that brook which is near there and they (ie the fish) were raised (fattened) there (in a fish-farm).

Sá heitir nú Alifiskalækur. 
That (brook) is-called now Alifiskaloekr (Fish-Farm (lit: Tame-fish)-Brook).

Þar varð í veiður mikil og taldi Hof-Hallur sér veiðina. 
(It) became (ie was) there great in fishing and Hof (Temple)-Hallr claimed-for-himself the-catch (fishing)

En Þuríður drikkinn taldi sér og sínu landi og frelsti hún sveinunum.
But (And) Þuríðr drikkinn claimed (it, ie the Fish-Farm) for herself and her land and she secured (the Fish farm) for the-boys.

En um veturinn léku þeir knattleika á Þorskafjarðarísi og komu þar til synir Hallsteins og Djúpfirðingar, Þorsteinn úr Gröf og Hjallasveinar. 
But (And) during the-winter they played ball-sports on Þorskafjarðaríss (Cod-Fjord-Ice) and the sons of Hallsteinn and of (the) Djúpfjörð (Deep-Fjord)-folk, Þorsteinn out of Gröf (Grave) and (the) boys-of-Hjalli (ie the lads from Mountain-Side-Ledge) came there-to.

Þeir fyrir sunnan Þorskafjörð gerðu Þóri að fyrirmanni fyrir örleiks sakir og allrar atgervi. 
They south of Þorskafjörðr (Cod-Fjord) made (elected?) Þórir as leader (of the pack, a la Riff from West Side Story) for reasons of (ie because of) (his) sporting-readiness (sporting prowess?) (taking örr (Z1) + leikr literally may fit the sense better than ‘liberality’ I´m guessing) and all (his) accomplishments

En vestanmenn vildu ekki það og ýfðust við honum allir nema Hallsteinssynir.
But the folk (Men) from-(the)-west wanted not that and all except Hallsteinn’s-sons picked-a-quarrel with him.

Skip kom út um sumarið í Breiðafirði á Dögurðarnesi og hét Bárður stýrimaður, frændi Odds og félagi þá er þeir höfðu í hernaði verið. 
A ship came out during the-summer into Breiðafjörðr (Broad-Fjord) at Dögurðarnes (‘Day-Meal’s’-Ness) and the captain was-called Bárðr, kinsman of Oddr and a partner when they had been a-raiding.

Bárður sendi til Odds og fluttist síðan til Þorskafjarðar við fimmtánda mann. 
Bárðr sent for Oddr and (he) conveyed-himself after-that to Þorskafjorðr (Cod-Fjord) with (the) fifteenth person (man) (ie with fourteen others).

Fimm voru íslenskir menn með honum og réðust þeir í brott til héraða sinna. 
Five were Icelandic persons (men) with him and they went away to their districts.

En Bárður vill tvívegis fara og beiddi Odd manna svo að hann væri fær. 
But (And) Bárðr wants to travel to-and-fro and asked Oddr for persons (men) so that he was able-to-go (travel) (foerr)

Þar réðst til Þórir og þeir níu fóstbræður og svörðust allir í fóstbræðralag. 
Þórir and those nine foster-brothers were were-resolved (?) to (it) there and all swore-themselves in (the) foster-brotherhood.

Skyldi hver þeirra annars hefna. 
Each of them should avenge another.

Þeir skyldu saman eiga fengið fé og ófengið það er þeir fengju jafnt og til ynnu, og var Þórir fyrirmaður þeirra, þá Ketilbjörn, Þórhallur og Þorsteinn Drikkinnarsynir, Hyrningur Hallsson, Björn Beruson, Ásmundur Naðursson, Már Hallvarðsson, Óttar Skáldsson. 
They should together have (ie own in common) captured wealth and not-captured, that which they should-gain always and should-act-so-as-to-gain (vinna til, Z12), and Þórir was their leader, then Ketilbjörn, Þórhallr, and Þorsteinn (Þúriðr)-drikkinn’s-son, Hyrningr Hallr’s-son, Björn Bera’s-son, Ásmundr Naðr’s-son, Már Hallvarðr’s-son, Óttar (Vaði)-Skáldr’s-son.

Þessir réðust til skips með Bárði og urðu vel reiðfara, tóku Þrándheim.
These sailed (went by ship) with Bárðr and had a good voyage, reached Þrándheim (Trondheim, Norway).