Here’s my translation
Alan
Ok er Bergþórr frá þetta, at Magnús hafði kveðit vísu, hafði hann týgilig orð um, at eigi mundi svá búit sjatna.
And when Berþórr heard this, that Magnús had recited a verse, he had boastful (<týgilig mól>=<overmodige ord> Lexicon poeticum, 1931) words (neut plural) about [it], that [it] would not abate as matters stand (ie things would not end there).
En þau orð spyrr Magnús prestr ok kvað vísu:
But (And) Magnus [the] priest is-informed-of those words (neut plural) and recited a verse.
[Option A]
[See under Option B]
Margr mundi sá sendir
sókngífrs numinn lífi,
linna vangs, fyr löngu,
lundr, es nú rekr undan,
ef brynhríðar beiði
biti týgilig skýja,
niðr drepr skald, und skildi,
skeggi, mál sem eggjar.[10]
[Option B]
Margr mundi sá sókngífrs sendir numinn lífi fyr löngu, lundr linna vangs, es nú rekr undan, ef týgilig mál biti brynhríðar skýja beiði und skildi sem eggjar.
Many would [be] that sender of [the] battle-troll (ie axe) (ie warrior) taken (ie deprived) of [his] life a long-time-before (ie long since), tree of the field of serpents (is this another kenning for <warrior>?), who [it] now drives away (ie who now escapes, <reka>, Z7), if boastful speeches bit (cut) [the] craver of [the] clouds of battle (‘mail-storm’) (ie warrior) under [his] shield like edges [do].
(Fellow) Warrior, many a warrior who now escapes, would long since have been deprived of his life if boastful speeches cut the warrior under his shield like (sword) edges do.
Skald drepr skeggi niðr:
[The] scaldic-poet dips (<drepa>, Z.ii.3) [his] beard down:
[Option C]
Margur hraustur drengur mundi fyrir löngu sviptur lífi, maður minn, sá sem nú er heill á húfi, ef stóryrði bitu skildi búinn hermann sem sverðseggjar.
Many a doughty man-of-valour would a long-time-before (ie long since) [have been] deprived of life, my person (man), that-one (ie he) who is now safe and sound (MnI idiom, lit: hale on a hulk), if big-words bit (cut) [the] warrior endowed (equipped) with shield like swords-edges [do].
Skáldið drúpir höfði.
The-scaldic-poet droops [his] head.
Ok eftir þat er þessar vísur váru kveðnar, þá söfnuðu þeir Þorvaldr ok Bergþórr liði ok gera til Magnúss.
And after that when these verses were recited, then they, Þorvaldr and Bergþórr assemble a host and prepare (make ready) for Magnús.
Ok er hann spyrr þetta, ferr hann á fjall þat, er Sölólfsfell heitir, ok þar eru þau í einum helli, meðan þeir Þorvaldr váru í firðinum.
And when he is-informed-of this, he journeys to that mountain, which is-called Sölólfsfell (Sölólfr’s-Mountain), and they (Magnús and Jórunn, hence <þau>] are there in a certain cave, while they, Þorvaldr [and co.] were in the fjord.
Rannsökuðu þeir víða bæi ok leituðu þeira Magnúss ok fóru við þat á braut af heraði, at þeir fundu þau eigi.
They ransacked widely [the] farms (acc plural) and searched-for them, Magnús [and Jórunn] and journeyed with that (ie after doing all that) away from [the] district, [so] that they found them (ie Magnús and Jórunn) not.
Ok eftir þat snerist Jórunn í karlaföt ok fór með Magnúsi presti suðr á Eyrar á laun ok eftir þat af landi á braut.
And after that Jórunn was-changed into men’s-attire, and journeyed with Magnús [the] priest south to Eyrar in secret and after that away from [the] land (ie from Iceland)
Ok er þau kómu í Nóreg, gerði hann boð til hennar at ráði Erlends múgamanns.
And when they came to Norway, he made an offer (of marriage) to her (or possibly prepared a wedding feast, <boð>, Z2, for her) with [the] consent (<ráð>, Z5) of Erlendr [the] commoner (lit: man of the common people – probably not Erlendr [the] mobster 😊)
Hann var hirðmaðr Sverris konungs ok frændi Jórunnar.
He was a king´s-man of King Sverrir and a kinsman of Jórunn.
Magnús var lengi í Nóregi ok gat margt barna við Jórunni.
Magnús was a long-time in Norway and begat many children with Jórunn.
Kali hét maðr, hann var Halldórsson.
[There] was a man called Kali, he was [the] son-of-Halldórr.
Hann átti Ingiríði Snorradóttur.
He married Ingiríðir daughter-of-Snorri.
Hon fífldist frá Kala at þeim manni, er Ljótr hét.
She acted-as-seducer against Kali towards that person (man), who was-called Ljótr.
Hann var sonr Sela-Eiríks.
He was [the] son of Sela-Eiríkr.
Ok er þeir Þorvaldr ok Kali urðu þess varir, þá gerðu þeir sát fyrir Ljóti ok sá inn þriði maðr, er Þórðr hét ok var Kalason.
And when they, Þorvaldr and Kali, became aware (<varr>, adj) of that, then they prepared an ambush ahead-of Ljótr, and-also that-one, the third person (man) (ie in the ambush party), who was-called Þórðr, and was [the] son-of-Kali.
Ok er þeir fundu Ljót, sóttu þeir hann þrír með vápnum, en hann varðist svá vel, at þeir gátu hann seint sóttan.
And when they met Ljótr, they, [the] three [of them] attacked him with weapons, but (and) he defended-himself so well, that they were-able to overcome him [only] slowly.
Þá eggjaði Kali Þorvald, at hann skyldi sækja at djarfliga, ok sagði klæki vera, at þeir fengi eigi einn mann sóttan.
Then Kali urged Þorvaldr, that he should attack boldly, and said [it] to be cowardice, that they were not able to overcome one person (man).
Svá lauk þeira fundi, at þeir vágu Ljót.
Their meeting (or fight) ended such that they slew Ljótr.
Um þat víg orti Eilífr vísu:
About that slaying Eilífr wrote a verse:
[Option A]
[See Option B]
Kali bauð kjark at
kaldráðum Þorvaldi,
nýtik Fjölnis flýti-
feng, en til var engi.
Þórðr munat virðum virðask,
vann á dauðum manni,
áðr sló á hodda hlæði
hvikan, með spjót it mikla.[11]
[Option B]
Kali bauð at selja kaldráðum Þorvaldi kjark, en engi var til.
Kali offered to deliver courage (spirit, Lexicon poeticum, 1931) to [the] evil-minded Þorvaldr, but [he] was no-one towards [it] (ie he may as well have not been there, he was not up to the challenge)
Nýtik flýtifeng Fjölnis.
I derive-benefit from [the] hasty-supply of Fjölnir (poetry).
Þórðr munat virðask virðum, vann á dauðum manni með it mikla spjót.
Þórðr will-not be-esteemed by men, [he] did-a-bodily-injury to a dead person (man) with the great spear.
Áðr sló hvikan á hodda hlæði
Already [one] slew [the] wavering loader of treasures (generous person)
[Option C]
Kali bauðst til að selja hinum kaldráða Þorvaldi kjark, en hann var enginn til.
Kali volunteered-himself to deliver courage (spirit) to the evil-minded Þorvaldr, but (and) he was no-one towards [it] (ie he may as well have not been there, he was not up to the challenge)
Eg yrki fljótgerða vísu.
I compose a quickly-made verse.
Þórður mun ekki hljóta virðingar manna, því að hann vann á dauðum manni með hinu mikla spjóti sínu.
Þórðr will not get [the] esteem of persons (men), because he did-a-bodily-injury to a dead person (man) with that great spear of his.
Áður hafði maðurinn verið hikandi.
Already the-person (man) had been wavering (=<hvikandi>)