Here’s my translation

Alan

Þá sér hann hvar Stígandi hleypr. 
Then he sees where Stígandi runs.

Hann krækir þegar króksvíðunni í kampinn á Skeggja ok dregr hann at sér. 
He hooks at once with the-bill-hook into (the) moustache on Skeggi and draws him (Skeggi) to himself.

Vatn eitt var nærri þeim. 
A lake only (a mere mere) was near them.

Hann dregr Skeggja út í vatnit. 
He draws Skeggi out into the-lake (water).

Fór þá svá sem vant var, at Stíganda tók eigi djúpara vatnit enn jafnsitt skóm. 
Then (it) went just as was usual (vanr), that the lake (water, nominative) reached (taka, Z3) not deeper than (enn = en) as-long-as (jafn-síðr, CV) to (the) shoes of Stígandi. (ie the water only came up as far as his shoes)

Skeggja var óhægt at koma sundlátum við þvíat krókrinn var fastr í kjaptinum, en þó kafaði hann svá næri fæti hans at hann beit af honum tána ina stærstu. 
For Skeggi (it) was difficult to employ (lit: come with, koma e-u við, Z4) swimming-movements (sund-læti) because the-hook was fast in the (his)-jaw, but nevertheless he dived-under-water near his (Stígandi’s) foot so that he bit (bíta) the biggest toe off him (ie bit off his big toe)

Stígandi stakk ór honum bæði augun. 
Stígandi put out (stinga) from him both the- eyes (ie both Skeggís eyes)

Ok sleppti hann honum síðan ok fáð hann þá eigi í burt af vatninu. 
And he let-him slip after-that and he got (weak form of past tense of fá, fekk? Can´t think what else it could be) then not away from the-water (lake).

Ok drukknaði hann þar.
And he was-drowned (drukna) there.

Þeir Toppr ok Kampi sóttu báðir at Knúti. 
They, Toppr and Kampi both attacked Knútr.

Þá kom Hörðr fram ór skóginum. 
Then Hörðr came forward out-of the-forest.

Toppr sneri þegar í móti Herði ok hjó til hans öxi, en hann brá við stjölnum ok stökk úr munnin úr öxinni. 
Toppi turned at-once towards Hörðr and hewed at him with an axe (instrumental dative of öx), but (and) he (ie Hörðr) suddenly-moved-the (his) butt and (it, ie this action) drove-away (stökkva, Z.ii) the-steel-edge (munnr, Z2) out-of-the-axe (ie separated the axe-head from the axe-shaft)

Hörðr hljóp þá at honum ok rak hann niðr fall mikit. 
Hörðr then leapt at him and he pushed him down violently (lit: a great fall, see reka, Z4).

Settist síðan á hann ofan svá fast at brotnaði í honum hvert bein. 
After-that he (Hörðr) set-himself down on him (Toppr) so hard that every bone (nominative) in him (Toppr) was-broken.

Eigi bitu vápn á Kampa. 
Weapons did not bite (cut) on Kampi.

Knútr greip í kampa honum ok snaraði hann úr hálsliðinum.
Knútr grabbed him by the-moustache and turned him out-of the-neck-joint (ie wrung his neck)

Sökktu þeir þeim niðr í vatnit. 
They made-them-sink down into the-lake (water).

Síðan fóru þeir heim í sæluhúsit ok bjuggust um. 
After-that they journeyed home to the hospice (travelodge) and encamped (made themselves comfortable).

Hörðr lá við þilit öðru megin en Knútr öðru megin. 
Hörðr lay against the-wall-panel on one side (of the room) but (and) Knútr on the-other side.

Stígandi lá í miðit. 
Stígandi lay in the-middle.

En þegar er þeir váru nýsofnaðir þá lét Knútr illa í svefni; færði hann fætrna við þilinu. 
But (And) as-soon-as they were just-fallen-asleep, then Knútr was restless (lit: behaved badly, láta, Z7) in (his) sleep; he moved the (his)-feet (or legs) against the-wall-panel.

Var þá ylgr komin í fang honum ok vildi bíta hann. 
A she-wolf was then come into (entered) his embrace (forced herself into his personal space such that he was forced to grapple with her, cf kom spjótið í fang honum, CV.iii) and wanted to bite him.

En hann tók sterkliga í mót; hon færði kryppuna við þilinu en setti klærnar í bringu honum. 
But he offered-resistance (cf taka í móti,Z12) strongly; she moved the (her) hunch(ed back) against the-wall-panel and set the (her)-claws into his chest.

Hörðr hrökk undan sviptingum þeira. 
Hörðr drew back (escaped) from their struggle.

Setti hann kryppuna við timbrveggnum svá at hann brotnaði, ok komust þeir þar út. 
He set the-(his) hump against the-timber-wall so that (it, the wall) was-broken, and they made-their-way there-out (escaped by that means).

Stígandi krækti í huppinn á ylginni ok reif út ór henni garnirnar, en Hörðr hljóp á bak henni ok brotnaði þá í henni hryggrinn. 
Stígandi hooked into the-loin on the-she-wolf and tore out of her the-guts (intestines, lit: yarns), but (and) Hörðr leapt on her back, and the-spine in her was-broken.

En svá hafði hon sett klærnar í bringu Knúti at berir skinu við bringuteinarnir. 
But so (in such a way) had she set the-claws (kló) into (the) chest of Knútr that the-breast-rails (lower ribs, masc nominative plural) shone(3^rd pers pl past tense of skína) naked (exposed) (nom pl. of berr) with (it) (ie as a result).

Þá var Hlégerðr þar komin. 
Then Hlégerðr was come there.

Knútr hjó til hennar, en hon varð at kráku ok fló upp. 
Knutr hewed towards her, but she became (turned into) a crow and flew (fljúga, see CV ‘another old pret. fló…now quite obsolete’) up.

Höggit kom á vænginn ok tók af henni vænginn. 
The-blow came on to the-wing and took the-wing off her.

Fló hon þá til norðrættar ok hvarf þeim skjótt.
She flew then to (the) north-quarter and vanished from them (hverfa, Z2) speedily.