A number of difficulties for me in this passage...

Nú er at segja frá Herrauði ok Bósa, at þeir búast at sigla heim ór hernaði. 

Now we must tell about Harraudr and Bosi, that they prepared to sail home from freebooting.

Þá höfðu þeir frétt, at Sjóðr hafði rænt Þvara karl. 

They had then learned that Sjodr had robbed old-man Thvara.

Ætlaði Herrauðr þá at friða fyrir Bósa ok sætta hann við konung. 

Herraudr then intended to intercede for Bosi and make peace for him with the King.

Þeir fengu veðr svá mikil, at skip þeira skildust, ok týndust þau öll, sem Herrauðr hafði heiman haft, en hann komst með tvau skip í Elfarsker, en Bósa rak til Vindlands einskipa.

They got such a strong wind, that their ship broke up, and they all perished, as Herraudr had had at home, but he arrived with two ships in Elfarser, and Bosi's drove (i.e., "sailed") to Vindland with a single ship.

Þar lá fyrir Sjóðr með tvau skip, nýkominn ór Austrvegi, ok hafði hann keypt konungi dýrgripi. 

There Sjodr lay at anchor in front with two ships, newly arrived from Austrvegr, and he had made an agreement about the king's treasures.

En er Bósi vissi þat, bað hann menn sína vápnast, ok lagði hann til fundar við Sjóð ok spurði, hverju hann vildi bæta, er hann hafði rænt Þvara karl. 

When Bosi learned that, he asked his men to arm themselves, and set a course to meet with Sjodr and asked, if he wanted to compensate for when he had robbed old man Thvara.

Sjóðr kvað hann firna djarfan, er hann þorði slíkt at mæla, þar sem hann var áðr útlagi konungs, ok kvað honum vel yfir at láta, ef hann missti eigi meira. 

Sjodr told him (that he) blames boldly, if he spoke thus to Thorr, when he was previously the king's outlaw, and told him to yield well, if he should not lose more.

Þá tóku hvárirtveggju til vápna, ok sló í bardaga með þeim, ok lauk svá, at Bósi varð banamaðr Sjóðs. 

Each of the two sides began to furnish themselves with arms, and a battle began between them, and it ended thus, that Bosi became Sjodr's slayer.

Gaf hann þá grið þeim, sem eftir váru, en tók at sér skipit ok allt þat, er á var.

He then granted them quarter, those who remained, and took for himself the ship and all that, which was in (the ship).   (Z. vera 10: vera eptir = to be left, to remain)        (Z gefa 2: gefa e-m grið = to grant quarter or pardon to one)

En er honum gaf byr, siglir hann undir Gautland ok fann þar Herrauð, fóstbróður sinn, ok sagði honum tíðendin, en Herrauðr sagði honum, at þat mundi eigi bæta um vinsældir hans við konung, - "eða hví fórtu á minn fund, svá nærri mér sem þú hefir höggvit?"

And when he got a fair wind, he sails below Gautland and met Herraudr, his foster brother there, and told him the news, but Harraudr told him, that that would not compensate for his popularity with the king, "why did you go to my meeting, so near me as you have struck?"

"Ek vissa," sagði Bósi, "at mér mundi eigi tjá at forðast þik, ef þú vildir illu til þín slá, en ek þóttumst þar allt traust eiga, sem þú vart.

"I knew," said Bosi, "that to me it would not be of use to avoid you, if you wanted bad to strike you, and it seemed to me there to have all support, as you (are) aware.

"Kalla má," segir Herrauðr, "at lítill mannskaði væri at Sjóð, þó at mér væri skyldr, ok mun ek fara á fund föður míns ok freista, ef ek gæti sætt ykkr."

"Can say," says Herraudr, "little loss of life would be to Sjodr, though to me it would be obliged, and I will not go to meet my father and try, if I could get your settlement."

Bósi kvaðst eigi vænta mikils létta af konungi, en Herrauðr sagði, at eigi dygði ófreistat. 

Bosi said for himself not to want much alleviation from the king, but Herraudr said, nothing ventured nothing gained.  (?? same as: at ekki dugir ófreistat = Nothing ventured, nothing gained? Reference: https://www.usask.ca/english/icelanders/proverbs_BNS.html)

Fór hann á fund föður síns ok gekk fyrir hann ok kvaddi hann virðuliga. 

He went to meet with his father and went before him and greeted him respectfully.

Faðir hans tók honum fáliga, því at hann hafði frétt áðr sameign þeira Bósa og Sjóðs.

His father received him coldly, because he had previous news (about) Bosi's and Sjodr's fight.

Herrauðr mælti til föður síns: "Þar er til bóta at sjá, sem þér eruð, við Bósa, félaga minn, því at hann hefir hent slys mikit. 

Herraudr said to his father: "There is a compensation to see to, as you are, with respect to Bosi, my comrade, because he has committed a great wrong.

Hann hefir vegit sjóð, son þinn, þó at sakir væri nokkurar til, ok viljum vér bjóða sættir ok fé svá mikit sem þú vilt sjálfr kjósa ok þar með várt fylgi ok hylli ok slíka þjónustu sem þér vilið hann krefja."

He has slain Sjodr, your son, though would charges would exist, and we would like to offer a settlement and so much money as you would like to choose yourself and there with our support and favor and such service as you wanted to demand of him."       (Z. vera 10: vera til = exist)

Konungr svarar þá reiðuliga: "Mikit kapp leggr þú á, Herrauðr, at fylgja illmenni þessu, ok mundi mörgum þykkja þér betr standa at hefna bróður þíns ok várrar svívirðu."

The king then answers angrily: "You impose much zeal, Herraudr, to accompany this wicked man, and many would think you better stick to avenge your brother and our dishonor."