Here´s my translation

Alan

Eftir það riðu þeir Þórir í brott og er þeir voru skammt komnir sáu þeir þrjá menn ríða frá Bæ og var einn í blárri kápu. 
After that they, Þórir (and co) rode away and when they were (had) come a short (distance) they saw three men ride from Boer (Town) and one was in a blue (black) hooded-cloak.

Það var Hallur, Loðinn og Galti. 
That (threesome) was Hallr, Loðinn and Galti.

Þórir keyrir þegar hestinn sporum er hann sá þá og ríður frá sínum mönnum. 
Þórir drove at-once the (his) horse with spurs (‘put spurs to his horse,’ spori, Z1) when he saw them and rides away-from his people (men).

Hann gat farið þá hjá Steinólfsdal og varð þó eigi höggfæri við Hall. 
He was-able-to overtake (fara, Z13) them by Steinólfsdalr and yet a (sword-) striking-opportunity (nominative) against Hallr did-not come-to-pass.

Þórir skaut eftir honum spjóti og kom í söðulbogann og þegar í gegnum og svo í bak Halli. 
Þórir shot a spear after (ie aimed at) him (Hallr) and (it, the spear) came into the saddle-bow and at-once through (it) and so into (the) back of Hallr.

Hann snarast við og kippti í brott spjótinu. 
He turned-himself-quickly with (it) (ie in-response) and drew-quickly away the-spear.

Þá hjó Galti til Þóris en Hallur reið undan sem hann mátti. 
Then Galti hewed at Þórir but (and) Hallr rode away when (sem, Z5) he could (when the opportunity arose).

Þórir hljóp þá af baki og er svo sagt að hann hamaðist þá hið fyrsta sinn. 
Þórir leapt then from (horse-) back and (it) is thus said (related) that he raged (‘went beserk’) then for the first time.

Galti var og hamrammur og var þeirra atgangur hinn harðasti. 
Galti was also seized-with-a-warlike-fury and their attack was the hardest (fiercest).

Fór Galti þá undan en Þórir sótti eftir. 
Galti then went away (‘excused himself’ J, fara undan, Z18) but (and) Þórir sought after (him, ie pursued him, soekja, Z10)

Loðinn þóttist engan hlut að mega eiga og reið hann eftir Halli. 
Loðinn bethought-himself to be-able to have no participation (ie out of his depth?, with no wish/chance to get involved?) and he rode after Hallr.

En þar kom að Þórir bar af Galta. 
But (And) (it) came there (ie it came to pass) that Þórir surpassed (overcame?, bera af e-m, Z11)

Þar heitir nú Galtardalur.
There (ie that place) now is-called Galtadalr (Galti´s-Dale)

Þá hljóp Þórir á hestinn og var mjög móður. 
Then Þórir leapt on the (his)-horse and was very exhausted.

Hann reið þá að leita Halls og fann hann örendan við túngarð á Hofstöðum. 
He rode then to seek Hallr and found him dead (‘out-of-breath’ J) by (the) home-field-fence at Hofstaðir (Temple-Steads, Sanctuaries).

Hann hafði látist af sári því er Þórir hafði veitt honum og fallið þar af baki. 
He had died from those wounds which Þórir had inflicted on him and (had) fallen there off (horse-) back.

Þórir fór til móts við félaga sína, riðu síðan heim vestur yfir Þorskafjörð. 
Þórir journeyed to a meeting with (ie to see) his comrades, (and they) rode after-that home west along Þorskafjörðr (Cod’s-Fjord)

Hann bauð Hyrning sætt eftir föður sinn en hann tók því vel. 
He (Þórir) offered Hyrningr settlement after (ie as compensation for, as was due for) his (Hyrningr’s) father (Hallr) but (and) he accepted (took) that well.

Fór hann á Hofstaði og tók þar við búi og var hann beturfeðrungur. 
He (Hyrningr) journeyed to Hofstaðir (Temple-Steads) and took there (the) farm and he was a man-better-than-his-father.

Var hann aldrei í mótgangi við Þóri.
He was never in opposition against Þórir.

19. kafli
Chapter 19

Steinólfur sat í búi sínu og þóttist þungar fréttir hafa um fjörðinn. 
Steinólfr sat (remained) at his farm and bethought-himself to have (receive, hafa, Z8) heavy (depressing) news concerning the-fjord.

Hann var svo var um sig að hann var aldrei fyrir vestan fjörð næturgestur. 
He was so aware about himself (so wary, cautious, on his guard) that he was never a night-guest west of the fjord (ie he didn´t dare spend a night away from home).

Hann setti annan mann fyrir búið í Bæ að annast þar um. 
He placed another person (man) over (ie at the head of, fyrir, Z6) the-farm at Boer to be-in-charge there-abouts.

Þórir sat nú um kyrrt og var honum allmikill hugur á að finna Steinólf en þóttist eigi föng á hafa að sækja hann suður um fjörð fyrir liðsafla sakir.
Þórir now sat (remained) quiet and (there) was a very-great desire in him to meet Steinólfr but (he) bethought-himself not to have opportunity (fang, pl) to seek-out him south across the fjord for-reasons-of (lack of?) troops.