Here’s my translation

Alan

En hann kvað hana næri mundu geta hversu hon hefði fyrir honum sét. 
But (And) he declared her (ie, that she) would guess (geta, Z.ii.1) nearer (ie get closer to the truth) how she had provided for him (sjá fyrir e-u, Z6). (how she had arranged things for him).

Hon spurði hvat hann hefði gjört af hestamanninum. 
She asked what he had taken from (göra e-t af e-m, Z13) the-horse-man (groom).

Hann tók þá höfuðit af Skildi ok snaraði fyrir brjóst henni. 
He took then the-head of Skjöldr and flung (it) against her breast.

Hon greip í fax flókafolaldinu ok var þá lauss belgrinn ok sló um nasir honum. 
She gripped into (the) mane of the filly-foal-of-the-matted-coat and the (foal’s) skin-case was then loose and (she) struck him around (the) nose (lit: nostrils) (with it).

En hann sneri í burt með ok brenndi þar sem engi vissi. 
But (And) he turned away with (it, the skin) and (he) burned (it) there where no-one looked (vita, Z4) (ie out of sight).

En menn sá at lítil mey lá þar sem fylbelgrinn hafði legit. 
But (And) folk (men) saw that a little maiden lay there where the-foal-skin-case had lain.

Lét meykonungrinn dreypa víni ok heilnæmum drykk á varir henni, ok nærðist hon skjótt. 
The-maiden-king caused to-let-fall-in-drops wine and a wholesome (heilnæmr, CV) draught (presumably masc dat sg?) to her (the little maiden’s) lips (MnI spelling of plural varrir, acc pl of vörr) and she (the little maiden) recovered (noerast) quickly.

Ok því skjótara sem fylbelgrinn brann meir.
And the more-quickly (see því with compar, Z5) as (the) more the foal-skin-case was consumed-by-fire.

Liðr nú deginum ok lystir meykonginn at ganga til borðs. 
(It) passes now in the-day (the day draws on, líða, Z4) and (it) pleases the-maiden-king to go to table (ie the maiden-king wishes to dine).

Hon gjörðist þá heldr ill yfirsýnis. 
She made-herself then rather hard of appearance (ie she adopted a rather dirty look, looked daggers).

Ok vágaði engi maðr hana orða at beiða ok engi vágaði at skenkja henni nema Hörðr. 
And no person (man) dared (vága, CV) to request words with her (ie to address her) and no-one dared (vága, CV) to serve her (with drinks) except Hörðr.

Hon bað sína menn alla vera með vápnum. 
She asked all her folk (men) to be with weapons (ie to arm themselves).

En síðan sezt hon undir borð. 
But (And) after-that she sets-herself (down) at table.

En er miðr dagr var kominn, þá tók hon skjöld ok sverð þat sem átt hafði Sigrgarðr. 
But (And) when mid-day was come, then she took a shield and that sword which Sigrgarðr had owned.

Hon setti skjöldinn fyrir brjóst sér en bendi sverðit um kné sér.
She set the-shield before her breast but (and) bent the-sword across her knee.

Í því bili kom Knútr í höllina ok gengr vakrt eptir hallargólfinu.
At that moment Knútr (really Sigrgarðr in disguise) came into the-hall and walks watchfully along the-hall-floor.

Meykonungrinn spratt upp ok hjó til hans með sverðinu, en hafði skjöldinn fyrir andliti sér. 
The-maiden-king sprang up and hewed at him with the-sword, but (and) had the-shield in-front-of her face.

Hörðr bar undir kryppuna ok kom sverðit þar í ok brotnaði skarð í sverðit. 
Hörðr bore the (his)-hump under (her blows) (thus shielding Knútr-Sigrgardr) and the-sword came there-in and a notch was-broken into the-sword (ie the edge of the sword was chipped).

Stígandi krækti skjöldinn frá andliti meykonungsins en Knútr setti eggit á nasir henni svá at stropinn fór niðr um hana alla, en hon fell í óvit. 
Stígandi hooked the-shield from (the) face of the-maiden-king but (and) Knútr (Sigrgarðr) set the-egg on her nose (nostrils) so-that the-thin-not-so-fresh-egg-yolk went down across all her and she fell into insensibility (a swoon).

Tók hann þá sverð sitt ok hjó til hennar með tveim höndum, ok stefndi á hálsinn. 
He (Knútr) took then his sword and hewed at her with two hands, and aimed at the-neck.

Hörðr hljóp þá undir hann ok váru þá sviptingar harðar með þeim. 
Hörðr leapt then under him (Knútr/Sigrgar’r) (thus shielding the-maiden-king?) and then hard tussles were (ie took place) between them.

Stígandi tók þá meykonung ok dreypti víni á varir henni ok vaknaði hon skjótt við.
Stígandi then took the maiden-king and let-fall in drops wine on her lips (acc plur of vörr) and she awoke quickly with (that).

Hirðmenn sóttu þá at þeim. 
(Her) king’s-men then attacked (sought after) them (Knútr, Stígandi and Hörðr).

Sleppti Hörðr þá Knúti. 
Hörðr then let-slip Knútr (ie let go of him).

En þeir sem til hans hjuggu þá brotnuðu sverð þeira í kryppu hans eðr þjóum. 
But (And) those who hewed at him, then their swords were-broken in his hump or thighs.

Hörðr bað þá hætta. 
Hörðr bade them to leave-off (desist, hætta, Z.i.).

Hafði Knútr þá drepit tíu menn.
Knútr had then (by that time) killed ten men.