Here is my vote for how this passage could be translated:

Sjóðr vandaði um þat, at Herrauðr gaf Bósa klæði af sér, því at hans váru jafnan í sundr rifin. 

Sjodr complained/chose carefully/prepared carefully concerning that, that Harraudr gave Bosi his clothes, because his were always ripped in pieces.

Bósi þótti ok harðleikinn, ef hann var at gamni með þeim, en engi þorði um at vanda fyrir Herrauð, því at hann mælti allt eftir Bósa. 

Bosi was also thought to be playing a hard, rough game, if he was at a game with them, but no one dared to complain to Herraud, because he always took Bosi's side.

Nú beiddi Sjóðr, at hirðmenn skyldi lemja hann ór leik.

Sjodr now asked, that the king's men should beat him out of the game.

3. Herrauðr fór í hernað með Bósa.

Herraudr went raiding with Bosi.

Þat var nú eitthvert sinn, at hirðin hafði soppleik, ok léku menn með kappi miklu, ok gerðu þeir nú leik til Bósa, en hann tók hart í móti, ok gekk hönd ór liði á einum konungsmanni. 

It was now sometime, that the king's men had a ball game, and (the) men played with great zeal, and they now prepared for Bosi, but he offered resistance, and one of the king's men gave himself up from the team.    (Z. taka 12: t. í móti = to offer resistance)

Annan dag braut hann fót í öðrum. 

Another day he broke the foot of another.

Inn þriðja dag veittust at honum tveir menn, en margir óþægðu honum. 

The third day, two men backed one another against him, and they were very vexing to him.

Sló hann þá augat ór einum með soppinum, en annan felldi hann, ok brotnaði hann á háls. 

He hit then the eye out of one with the ball, and he made the other fall, and he broke his neck.

Hlupu þeir þá til vápna ok vildu drepa Bósa, en Herrauðr stóð hjá honum með þá menn, sem hann gat fengit, ok var búit við sjálft, at þeir mundu berjast, áðr en konungr kom til. 

They then ran to their weapons and wanted to kill Bosi, but Herraudr stood beside him with the men who he had gathered, and it was prepared on the verge, that they would fight, before the king arrived.

En fyrir tillögu Sjóðs gerði konungr Bósa útlægan, en Herrauðr kom honum undan, svá at honum varð eigi nát.

But with Sjodr's help, the king made Bosi outlawed, but Herradur helped him escape, so that he didn't become caught.

Litlu síðar beiddi Herrauðr föður sinn at fá sér herskip ok röskva menn til fylgdar, því at hann lézt vilja ór landi ok afla sér meiri frægðar, ef þess verðr auðit. 

A little later, Herraudr asked his father to get him a warship and brave men for support, because he wanted to die (?) away from land and gain more fame, if this falls to his lot.   (Z. auðit: e-m verðr e-s au = it falls to one’s lot)

Konungr bar þat mál fyrir Sjóð, en hann kveðst ætla, at sneyðast mundi féhirzlurnar, áðr en Herrauðr er svá heiman gerr sem honum líkar. 

The king conveyed that stipulation for Sjodr, that he said for himself to intend, that would be bereaved of treasures, before Herraudr is so at home (he) does as he likes.  (??)

Konungr sagði, at þeir skyldu við þat leita, ok varð svá at vera sem konungr vildi, ok var nú búin ferð Herrauðar með miklum fékostnaði, ok var hann vandr at öllu, ok kom þeim bræðrum lítt saman. 

The king said, that they should try that, and it became so to be as the king wanted, and Herraudr's journey was prepared with much expense, and he was difficult (?) to all, and the brothers came little together.  (??)

Hafði hann fimm skip ór landi, ok váru þau flest öll forn. 

He had five ships from land, and most were all old.

Vaska menn hafði hann með sér ok mikit fé í gulli ok silfri, ok sigldi hann nú burt af Gautlandi ok suðr til Danmerkr.

He had valiant men with him and much wealth in gold and silver, and he now sailed away from Gautland and south to Denmark.