This one definitely had a few challenging bits.

> Hún tók nú um göndulinn á honum ok strauk um ok mælti:
> "Þetta er fimligr foli ok þó mjök rétt hálsaðr."

> She now took hold of his göndulinn and stroked around (it)
> and said: "this is a nimble foal and yet very straight
> necked."

> Now she took his magic staff and stroked about and spoke,
> “This is a nimble foal and yet very straight? embraced.”

> She took now his cock and stroked it and said: “This is a
> nimble foal and yet very straight necked.”

> She now took hold of his (ie the young-stallion’s)
> ball-of-string (clew, tangled mane, limp member? I can
> find no CV or Z evidence that göndull can be translated
> simply as shaft or suchlike despite its etym links to
> gandr) and stroked (him) and spoke: “This is a nimble
> young-stallion and yet very erectly clasped-around-the
> neck (ie stands very upright when clasped around the
> neck?. I can find no CV or Z evidence to support a
> translation of hálsaðr as simply ‘necked’)

She now took hold of his cock and stroked [it] and said:
‘This is a nimble young stallion and yet very
straight-necked.’

Clearly <göndull> here is not ‘clue/clew, a ball of yarn or
thread’, the sense given in CV. Neither Zoëga nor Baetke
has the word, but Wiktionary has it as ‘cock’ in the modern
language, and de Vries confirms this for Old Norse as well,
also giving the gloss ‘magic staff’. Presumably ‘magic
staff’ is the original sense (from <gandr>), and the
secondary sense is in origin a euphemism.

CV has <hálsaðr> ‘hilly’, but this doesn’t really fit the
context, and neither do senses naturally derived from
<hálsa>; the sense that I’ve chosen, derived directly from
<háls> ‘neck’, fits nicely with the next sentence.

> "Ekki er vel komit fyrir hann höfðinu," sagði hann, "en
> hann kringir betr makkanum, þá hann hefir drukkit."

> "He has not arrived well before the leader," he said,
> "and/but he better encircles the mane, then he has drunk."

> “The head will not avail him??,” said he, “but he eases
> better the making??, then when he has drunk.”

> “His head is not carried well,” he said, “but he handles
> more easily when he has drunk.”

> “(It) is not well placed for him in the-head, (ie his head
> is not well placed)” he (ie Bósi) said, “but he goes-round
> better in the-upper-neck (makki, CV, ie his upper neck
> curves better?), when he has drunk.”

‘His head is not well placed,’ he said, ‘but he bends around
better [i.e., becomes more flexible] at the top of the neck
when he has drunk.’

> "Sjá nú fyrir öllu," segir hún.

> "Now take care of all," she says.

> “That now before all,” says she.

> “See now for it all,” she said.

> “Take (imperative) care of everything now,” she says.

‘See to everything now,’ she says.

> "Ligg þú sem gleiðust," kvað hann, "ok haf sem kyrrast."

> "Lie as straddling," he said, "and hold as most still."

> “You lie with legs as wide apart as possible,” said he, “
> and be as calm as possible.”

> “Lay you as you please,” he said, “and be calm.”

> “Lie you with-legs-as-widespread-as-possible (sem +
> superl) (gleiðr not gleðjast),” he declared, “and remain
> as-still-as-possible (sem + superl).

‘Lie with your legs spread very wide,’ he said, ‘and be very
calm.’

Literally it’s ‘spread as widely as possible’, but I doubt
that it’s actually meant that literally.

> Hann brynnir nú folanum heldr ótæpiliga, svá at hann var
> allr á kafi.

> He now waters the foal rather fully, so that it was under
> water.

> He watered now the foal rather unsparingly, so that he was
> all eagerness.

> “He watered now the foal rather unsparingly, so that it
> was all underwater.”

> He waters now the-young-stallion rather unsparingly, so
> that he was all under water (completely submerged)

He now waters the young stallion rather fully, so that he
was entirely submerged.

> Bóndadóttur varð mjök dátt við þetta, svá at hún gat varla
> talat.

> The farmer's daughter was very pleased with this, so that
> she could scarcely speak.

> The farmer’s daughter became very pleased with that so
> that she was scarcely able to talk.

> The farmer’s daughter was very startled with that, so that
> she could scarcely talk.

> (The) farmer´s-daughter became (ie) was very startled (dár
> við e-t, Z1 rather than Z2) by this, so that she was
> scarcely able to talk.

[The] farmer’s daughter was greatly startled by this, so
that she could hardly speak.

> "Muntu ekki drekkja folanum?" sagði hún.

> "Will you not submerge the foal?" she said.

> “Will you not water the foal?” said she.

> “Might not you drown the foal?” she said.

> “Will-you not drown the-young stallion ( drekkja, Z2, but
> possibly suppress, quell, Z3; is this a play on drekkja?)”
> she said. (ie Either aren´t you at risk of drowning the
> young fella? or shouldn´t you be holding the young fella
> back? Both would make sense in the context, I think)

‘Will you not drown the young stallion?’ she said.

From context Alan’s first interpretation seems to me more
likely.

> "Svá skal hann hafa sem hann þolir mest," sagði hann, "því
> at hann er mér oft óstýrinn fyrir þat hann fær ekki at
> drekka sem hann beiðist."

> "He shall so have as he endures most," he said, "because
> he is more often (óstýrinn?) for that he would not get to
> drink as he requested on his owb behalf."

> “So shall he have as he endures most,” said he, “because
> he is often ungovernable for me for it he goes not to
> drink as he requests on his own behalf.”

> “So shall he have as he can most endure,” he said, “as he
> is most often unruly when he has not been able to drink as
> he demands.”

> “He shall have (the) most such (ie as much) as he (can)
> bear,” said he, “because he is for me often ungovernable
> (ústyrinn) for that (ie because) he gets not to drink when
> he asks-on-his-own-behalf.

‘He shall have such as most pleases him,’ he said, ‘for he
is often uncontrollable for me because he cannot drink as he
demands.’

The ‘endure’ translation is certainly possible, but Baetke
has <þoldi hann þat illa> ‘that pleased him not at all, he
complained about that’, and it seems to me that this sense
fits even better.

> Hann er nú at, sem honum líkar, ok hvílist síðan.

> He is now busy at, as pleases him, and was then rested.

> He is now busy? as he pleases and rests afterwards.

> He was now at it as he liked and then rested.

> He is now busy-at (it), as pleases him, and rests (present
> tense) after-that.

He is now busy at [it] as pleases him and rests afterwards.

> Bóndadóttir undrast nú, hvaðan væta sjá mun komin, sem hún
> hefir í klofinu, því at allr beðrinn lék í einu lauðri
> undir henni.

> The farmer's daughter wondered now, from where that rain
> will (have) come, as she has in the space between her
> legs, because all the bedding swung in froth under her.

> The farmer’s daughter wondered now, whence that wet came
> (from), that she has in (her) crotch because all the
> bedding played?? in a foam under her.

> The farmer’s daughter now wondered, from where this much
> wetness had come, as she had in the space between her
> legs, so that all the bedding under her rocked (swam?,
> floated?) in a lather.

> (The) farmer´s-daughter wonders (present) now, from-where
> this inundation will (have) come, which she has in the
> space-between-her-legs, because all the-bedding played
> into a lather (ie became awash) under her.

[The] farmer’s daughter now wonders whence this wetness will
[have] come that she has in the space between her legs, for
all of the bedding went in a lather beneath her.

For ‘went’ cf. CV s.v. <leika> 4, <lék á hinu sama> ‘it went
all one way’.

> Hún mælti: "Mun ekki þat mega vera, at folinn þinn hafi
> drukkit meira en honum hefir gott gert ok hafi hann ælt
> upp meira en hann hefir drukkit?"

> She said: "The cannot be, that your foal has drunk more
> than has done good to him and he has thrown up more than
> he has drunk?"

> She said,” Will it not possibly be that your foal has
> drunk more than has done him good and he has brought up
> more than he has drunk?”

> She asked, “May not it be that your foal has drunk more
> than has done him good and he has brought up (vomited)
> more than he has drunk?”

> She spoke: “Will that not be able (ie possible), that your
> young-stallion has drunk more than has done good for him
> and he has brought up (ie expelled) more than he has
> drunk?”

She said: ‘Can it not be [‘will it not be able to be’] that
your young stallion has drunk more than is good for him
[‘than has done him good’], and he has thrown up more than
he has drunk?’

> "Veldr honum nú eitthvat," kvað hann, "því at hann er svá
> linr sem lunga."

> "(Veldr?) to him now somewhat," he said, "because he is so
> soft to the touch as a lung."

> “Something now caused it to him,” said he, “because he is
> as soft as lungs.”

> “He is now worse, certainly,” he said, “ so that he is so
> soft as a lung.”

> “Something now rules (has come) (valda) over him,”
> declared he, “because he is as limp as a lung.”

‘Something is dominating him now,’ he said, ‘for he is as
soft as a lung.’

> "Hann mun vera ölsjúkr," sagði hún, "sem aðrir
> drykkjumenn."

> "He will be ale-sick," she said, "as other drinkers."

> “He must be sick from ale,” said she, “as other drunken
> men.”

> “He must be ale sick,” she said, “as other drinkers.”

> “He will be ale-sick (hung-over?),” said she, “like other
> drinkers.”

‘He must be ale-sick,’ she said, ‘like other drinkers.’

This is the only instance of <ǫlsjúkr> ~ <ölsjúkur> that
I’ve found, so this context furnishes the only clues to its
exact sense; my guess is that it just means ‘drunk’, or
possibly ‘falling-down drunk’.

> "Þat er víst," kvað hann.

> "This is certain," she said.

> “That is certain,” said he.

> “That is sure,’ he replied.

> “That is certain,” declared he.

‘That is certain,’ he said.

> Þau skemmta sér nú sem þeim líkar, ok var bóndadóttir
> ýmist ofan á eða undir, ok sagðist hún aldri hafa riðit
> hæggengara fola en þessum.

> They amused themselves now as pleased them, and the
> farmer's daughter either from above or under, and she
> declared of herself never to have ridden a more
> (hæggengara?) foal than this.

> The amused each other now as pleased them and the farmer’s
> daughter was alternately above or below, and she said of
> herself never to have ridden a gentler foal than this.”

> They entertained themselves now as they liked, and the
> farmer’s daughter was now on top and now underneath, and
> she said never had she ridden a pleasant going foal as
> this.”

> They amuse themselves now as pleases them, and (the)
> farmer’s-daughter was in-turns on-top or underneath, and
> she said-of-herself to have never ridden on a more
> easy-going (hoegr + gengr, in comparative) young-stallion
> than this.

They entertain themselves now as they please, and the
farmer’s daughter was now above [‘upon’] and now underneath,
and she said that she had never ridden a more easy-gaited
[‘easy-going’] young stallion than this.

> Ok eftir margan gamanleik spyrr hún, hvat manni hann sé,
> en hann segir til it sanna ok spurði á móti, hvat þar væri
> títt í landinu.

> And after many amusements, she asks what man he would be,
> and he tells her the truth and asked in return what would
> be noted in the country.

> And after much game playing she asks, what man he is and
> he tells it truthfully and asked in exchange, what had
> happened in the country.

> And after many pleasures she asked, what man he was, and
> he responded to it truthfully and asked in return, what
> news there was in the country.

> And after many an amusement (gram sg) she asks, what for a
> (ie kind of) person he was, but (and) he says to (her) the
> true (story) and asked in return, what had happened (see
> tíðr, Z5) there in the-land.

And after many an entertaining game she asks what kind of
man he is [‘be’, but that use of the subjunctive is now dead
in English], and he tells the truth and asked in return what
was happening there in the country.

> Hún segir, at þat væri nú nýjast, at þeir bræðr Hrærekr ok
> Siggeirr höfðu nát Hleiði konungssystur, en drepit Hring
> konung í Gautlandi, - "ok svá eru þeir nú frægir orðnir af
> för þessi, at engir þykkja nú þeim líkir í Austrvegi, ok
> hefir konungr gefit systur sína Siggeir, ok er þat þó á
> móti hennar vilja, ok á nú brúðlaupit at vera innan
> þriggja nátta.

> She says that it would now be the latest that the brothers
> Hraekr and Siggeirr had reached Hleidi, the king's sister,
> and killed King Hring in Gautland -- "and so they now were
> famous considered (?) for this, that no one now thinks
> them equal in Austrveg, and the king has given his sister
> in marriage to Siggeir, and yet that is against her
> wishes, and now the wedding (will) be within three nights.

> She says that now was the latest news, that those
> brothers, Hraerekr and Siggeir had reached Hleidi, the
> king’s sister, and slain King Hringr in Gautland, “and
> there are now such famous reports of their journey, that
> none seem their like in the eastern way, and the king has
> given his sister to Siggeir, and yet it is against her
> will and now the wedding is to be within three nights.

> She said the latest news now was that those brothers
> Hraekr and Sigger had gotten hold of Hleidi the King’s
> sister and killed King Hring in Gautland - “and so are
> they now renowned and talked about for this, that there
> are none thought like them now in Austrvegi, and the king
> has given his sister to Sigger, although that is against
> her will, and now the wedding is to be within three
> nights.

> She says, that that was now newest (ie the-latest), that
> those brothers Hrærekr and Siggeirr had got Hleiðr (the)
> king’s-sister, and killed King Hringr in Gautland, - “and
> they are now become (pp of verða) so famous for this
> journey, that none (plural) now are-reckoned like (ie the
> equal to) them in (the) East-way, and (the) king has given
> his sister (in marriage) to Siggeirr, and that is
> nevertheless against her will, and now the-wedding-feast
> has to be within three nights.

She says that it was now newest [i.e., the latest news] that
the brothers Hrœrek and Siggeir had got hold of Hleið, [the]
king’s sister, and killed king Hring in Götland, — ‘and they
have now become so famous for this journey that none [plural
in the ON, singular in English] is now thought to be their
equal in the eastern Baltic, and [the] king has given
Siggeir his sister in marriage, and that is nevertheless
against her will, and the wedding feast must take place
within three nights.

I can’t read this without being reminded of an old joke
about Thor. It seems that he once spent a similar night
with a farmer’s daughter. The next morning he revealed his
identity: ‘I’m Thor!’ ‘YOU’RE thore?! Not half ath thore
ath I am, I’ll bet!’

Brian