Here’s my translation

Alan

“Margt hefðir þú þat mátt vinna at mér hefði betr líkat, en várkynni ek þat hverjum manni þó hann veri líf sitt, ok með því at þú hefir gengit á mitt vald, þá mun ek þess ei svá greypiliga hefna sem vert er; en hefir þú ei spurt hversu þeim hefr af ferðar orðit sem hér hafa vetrvist tekit hjá oss?”
„Many-a-thing (lit many a that, margt þat) would-you have been able (mátt pp of mega) to do (vinna, Z1), that would-have pleased me better, but I would-excuse every person (man) that considering that (Þó, Z2, dropping the article ‚er‘, cf Z3) he would-be-defending (verja) his life, and with that that (ie because) you have gone into my power (ie have submitted to me), then I will not avenge (hefna) that (ie Sigrgarðr´s slaying) as fiercely as is deserving; but have you not heard (spyrja, Z4) how (it) has come to pass (ie turned out) for those who have taken winter-abode here with us from (their) journeys?

“Ekki kvíði ek ókomnum degi,” segir hann.
“I do not feel-apprehension for a future (ie lit un-come) day (singular),” say he. (I´m not worried about what tomorrow may bring)

“Þat þikjumst ek þér” segir hon, “ok á krippubaknum þeim sem hjá þér stendr at þit þikist eiga nökkut undir ykkr. 
“I think-to-myself that with you” she says, “and in regard to the-hump-backed (one), that-one who stands alongside you, that you-two bethink-yourselves to have anything in your power (lit: under yourselves, cf eiga mikit undir sér, eiga Z9) (ie that you are capable of anything, have supreme confidence in your own abilities).

Hugsið svá yðvart mál at þér séuð mér ei synsamir ef ek vil senda yðr nökkut. 
Think (you)-upon (imperative) your agreement (mál, Z10, or speech, Z1) such that you would-be to me not unobliging if I want to send you something (ie as in a command or request).

Máttu ok til þess ætla,” segir hon, “at ek mun ætla þér þegjandi þörfina fyrir þat er þú hefir drepit Sigrgarð þó at vit bærum ei alla gæfu saman.”
You-can also expect that,” says she, “that I will intend the being (remaining)-silent necessity with you (the requirement that we don´t speak to each other? that you don´t speak to me? that I don´t speak to you? depending on role of ‘þegjandi’ in sentence) for that that (ie because) you have killed Sigrgarðr even though we-two (ie Sigrgarðr and I) would-not-have-carried all good-luck (wouldn´t have had total good fortune) together.”

“Ei má sá böl bera” segir hann, “sem ei þorir at bíða, ok munu vér þat áhætta.”
“That-one (ie that person, he, sá) may not bear misfortune” says he, “who dares not to wait, and we will risk (hætta á) that.”

Sendi hann þá eptir varningi sínum ok lét heimbera, ok var þeim skiput ein steinhöll.
He then sent after (ie for) his goods and caused to carry-(them-) home (ie to where he now was) and a certain stone-hall was arranged for that (ie for his goods).

En er þeir komu þangat þá var þar myrkt, ok illa þefat. 
But (And) when they came thither, then (it) was dark there and foul-smelling.

Stígandi segist fyrst vilja innganga. 
Stígandi says-of-himself to want to go-inside first.

Stakk hann niðr króksviðunni, ok fann at holt var undir ok var þar tálgröf gjör í gólfit, ok skotit yfir þunnum skíðum ok breiddr á kögurr. 
He thrust (stinga) down the-bill-hook, and found that (it) was hollow (neut of holr, adj) under-(neath), and there was a pit-fall made in the-floor, and (it was) shot (covered?, skjóta) over with thin long-billets-of-wood and a fringed quilt (nominative) spread on (it)

Síðan rann hann yfir gröfina, ok segir þeim at ófært var. 
After-that he ran over the pit, and says to them that (it) was impassable (úfoerr)

Knútr ok Hörðr stukku yfir tálgröfina, ok var þat vel tólf álnar. 
Knútr and Hörðr leapt over the pit-fall, and that was a good twelve ells.

Stígandi krækti með krókssviðunni, ok kippti hinum yfir gröfina. 
Stígandi hooked with the-bill-hook, and pulled the-others over the-pit.

Hörðr vildi fyrst niðr setjast. 
Hörðr wanted to set-himself down first.

Settist hann niðr við dyrr utar ok brakaði mjök við. 
He sets-himself down against the outer (útar) doorway and (it) creaked much with (it) (ie as a result)

Framþrútin váru tjöldin. 
The-hangings (tapestries) were swollen-forth (ie bulging out, þrútinn + fram).

Hann setti krippuna upp við þilit ok váru þar menn undir með vápnum, ok kreisti hann líf frá þeim. 
He (ie Hörðr) placed the (ie his) bulge up against the-panel and folk (men) were there-under (ie under the panel) with weapons, and he squeezed life from them (ie crushed them to death).

Svá ók hann sér innar eptir höllinni, ok svá kringum hana, ok brakaði einart við, svá at undrum þótti gegna, en stundum skeldi hann herðunum upp á þilit. 
Thus he conveyed (past tense of áka, ók not ok) himself further-in along the hall, and also around it (the hall, fem), and (it) creaked incessantly with (it) (ie as a result), so that (it) seemed to signify wonders (ie to be of great wonder), but (and) now-and-then (stundum) he slammed (skella) the (ie his) shoulders up onto the-panel.

Var þá tekit af glugginum.
(It) was then taken them from the-wall-opening (dative singular). (ie the wall-opening was stripped of its covering)