Here’s my translation

Alan

Þórir hafði sæmdir miklar af ferð sinni og fé því er hann hafði út haft. 
Þórir had (ie received) great honours from his journey and that wealth which he had had (ie taken) out (of the cave?) (I wald have though „abroad“ but Z doesn´t give this sense for út).

Hann bað Þuríðar dóttur Hallsteins goða til handa Ketilbirni fóstbróður sínum og fékk þann kost og gerði bú í Tungu í Króksfirði en stundum var hann með Þóri.
He asked for Þuríðr daughter of Hallsteinn goði (priest/chieftain) (in marriage) on behalf of Ketilbjörn his foster-brother and (Ketilbjorn) got that marriage-match and built a farm in Tunga (Tongue) in Króksfjörðr (Hooks-fjord) but sometimes he was (ie stayed) with Þórir.

En er Þórir hafði einn vetur búið fór hann til Kleifa og með honum Gilli og Vaði skáld og fóstbræður hans. 
But when Þórir had kept-household (run his farm?) for one winter he travelled to Kleifar (Cliffs) and with him (were) Gilli and Vaði (the) skaldic-poet and his foster-brothers (plural).

Þórir bað Ingibjargar Gilsdóttur. 
Þóris asked for Ingibgjörg Gils’s (Gísl’s)-daughter (in marriage).

En er þeir sátu að málum þessum þá lét Gísl bóndi enga menn ná að fara inn til Ólafsdals því að hann vildi eigi að Þorgeir úr Ólafsdal yrði var við þar sem hann var biðill hennar Ingibjargar og hafði lagt við hana mikla ást. 
But (And) when they sat over (ie discussed, debated) these matters then farmer (yeoman) Gísl caused no men (persons) to be allowed (ná + inf) to travel in to Ólafsdalr (Ólafr’s-Dale) because he wanted not that Þorgeir out-of Ólafsfalr should-became aware there with (ie of it) as he (ie Þorgeir) was (the) suitor of her Ingibjörg and had bestowed much love on her.

Gísl lét þá þegar brúðlaup gera og hélt þar öllum komandi mönnum meðan veislan stóð.
Gísl caused then at-once to hold a wedding-feast and (he) held (ie he didn´t let them leave) there all coming (arriving) men (persons, guests) while the-feast lasted (lit: stood)

En er Þórir fór í brott með konu sína þá fara menn út með Gilsfirði til Saurbæjar, þeir er að boðinu voru, og fundu sauðamann úr Ólafsdal og sögðu honum gjaforðið Ingibjargar. 
But (And) when Þórir journeyed away with his wife then men (pesons) journey out along Gilsfjörðr (Gils’s-fjord) to Saurboer (Mid-Farm), those who were at the-wedding-feast, and met a shepherd out-of Ólafsdalr (Ólafr’s-Dale) and said to (ie told) him of the marriage-match of Ingibjörg.

Sauðamaður fór heim og segir þeim feðgum. 
(The) shepherd journeyed home and says to (ie tells) them, father-and-son.

Þorgeir vildi drepa boðsmennina og kvað firn í að þeir voru leyndir svikum slíkum en Ólafur bað eigi óverða gjalda og bað hann heldur gjalda Þóri. 
Þorgeirr wanted to kill the wedding-feast-guests and declared (it) a monstrous-thing in that they were hidden from such treachery but Ólafr begged (him) not to repay (the) guiltless (ones, ie don´t shoot the messenger) and begged him rather to repay Þórir.

En er þeir sáu að Þórir reið út um teig fyrir vestan fjörð þá báru þeir eigi áræði til að ríða eftir þeim.
But (And) when they saw that Þórir rode out across (the) strip-of-meadowland west of (the) fjord then they bore not (the) courage to ride after them.

Fór Þórir nú heim með konu sína og tókust þar ástir góðar. 
Þórir journeyed now home with his wife and began-there a good love (ie they came to love one another much).

Þau áttu son er Guðmundur hét og var hann allbráðger. 
They had a son who was-called Guðmundr and he was very-precocious (allbráðgörr).

Hann fæddist upp með Eyjólfi í Múla og gaf hann honum stóðhross hálf við Grím son sinn. 
He was brought up with (by) Eyjólfr in Múli (Mull) and he (ie Eyjólfr) gave to him stud-horses (plural, based on what follows) half (shares) with Grímr his (own) son. (usually a recipe for disaster)

Það var litföróttur hestur með ljósum hrossum.
That was a dappled stallion with light-coloured mares (plural).

Grímur Eyjólfsson var mikill og eldsætur og þótti vera nær afglapi. 
Grímr Eyjólfr’s-son was tall and habitually-sitting-by-the-fire and was-reckoned to be nearly a simpleton.

En er hann reis úr fleti var hann í hvítum vararvoðarstakki og hafði hvítar brækur og vafið að neðan spjörum. 
But (and) when he rose out-of the hall’s-raised-side-flooring he was in white common-wadmal-cape and had (ie wore) white breeches and wrapped from below with leg-bands.

Því var hann Vafspjara-Grímur kallaður. 
For that (reason) he was called Vafspjara (Legöband-wrapped)-Grímr.

Engi maður vissi afl hans. 
No man (person) knew his strength.

Hann var mjög ósýnilegur.
He was very unsightly (ugly).