Here’s my translation

Alan

Þá höfðu þeir Þorvaldr skipazt fyrir dyrrnar ok gerðu kví at Hrafni ok förunautum hans, en Þorvaldr stóð stund frá durunum ok hafði sverð í hendi ok brugðit á miðjar slíðrar, ok Hrafn hvarf til hans, en Þorvaldr tók kveðju hans, ok síðan settust þeir niðr ok hjöluðu, ok varð Þorvaldi ekki at orðum við Hrafn, ok þat þótti Hrafni undarligt, ok eigi sá Hrafn erendi Þorvalds við sik í því sinni. 
Then they, Þorvaldr [and co] had drawn-themselves-up in-front-of the-doorway and formed a lane-of-men- gradually-narrowing towards Hrafn and his travelling-companions, but (and) Þorvaldr stood a little-distance (<stund>, Z3) away-from the-doorway and had a sword in hand and [had] drawn [it] to mid-scabbard, and Hrafn turned towards him, but (and) Þorvaldr received his greeting, and after-that they set-themselves down and chatted, and nothing in-the-way-of-words (messages) came-to-pass from Þorvaldr towards Hrafn (ie Þorvaldr had nothing to the point to say to Hrafn), and that seemed to Hrafn extraordinary, and Hrafn understood not the business of Þorvaldr (ie did not understand what Þorvaldr was seeking) with him at that time.

Af þeim fundi fór hvárr þeira til síns heimilis. 
From that meeting, each of them journeyed to their home.

Loftr keypti síðan bæ þann á Rauðasandi, er at Stökkum hét, ok gerði þar bú á. 
Loptr bought after-that that farm at Rauðasandr, which was-called ‘at Stakkar’ (at Hay-Stacks), and erected there-on a house.

Þat ætluðu margir menn, at Eyjólfr Þorsteinsson, mágr Lofts, mundi rétta hluta hans ok þeir Sunnlendingar fyrir þingvistar sakir um ránit við Þorvald, en þat varð ekki. 
Many persons (men) expected that, that Eyjólfr Þorsteinn’s-son, father-in-law of Loptr, (and they, [the] folk-from-the-south-of-Iceland for reasons of their-living-in-the same-Þing-community), would put-right his (ie Loptr’s) position (ie would seek redress for Loptr), against Þorvaldr, concerning the-plundering, but that did not happen.

Þá var kveðin vísa þessi:
Then was composed-and-recited this verse.

[option A] 

   Víst eru farnir flestir
Certainly are destitute, most

   fálu hests it mesta,
of [the] horse of [the] giantess, of most [qualities]

   þótt lýðir böl bíði,
even-though persons misfortune suffer

   bræðendr at harðræðum.
feeders, with-regard-to hardiness.

   Menn eru seinir sunnan,
Persons (men) are slow from [the] south,

   slíkt heyrik oft, með Lofti
such hear I often, [together] with Loptr

   stála strangra éla
of hard steeled-weapons [the] outrage

   stefni ráns at hefna.[17]
[the] director of plunder to avenge.

(Obviously composed using the David Bowie ‘cut-up’ method of writing lyrics)

[option B]:    Víst eru flestir bræðendr fálu hests farnir it mesta at harðræðum, þótt lýðir bíði böl.     Menn eru seinir sunnan at hefna með Lofti stefni strangra stála éla ráns.  Slíkt heyrik oft
Certainly most warriors (lit: <wolf-feeders> or more fully <feeders of [the] horse of [the] giantess>, where <horse of the giantess> is a <wolf> and <bræðendr> is from the pp of  <bræða>, Lex. Poet) destitute (farinn at e-u, Z) of most [qualities] with-regard-to-hardiness, even-though persons (men) suffer (<bíða>, Z2) misfortune. Persons (men) from-[the]-south [together) with Loptr (ie in support of, on behalf of Loptr) are slow to take-vengeance on [the] warrior (lit: director (stefnir, CV) of hard steeled-weapons <stál>, Z2) for [the] outrage (él, CV,b, metaph) of [the] plundering. I hear such often.

[option C]:    Vissulega eru flestir menn að mestu leyti duglausir til karlmennskuverka, þótt fólk verði fyrir tjóni. Sunnanmenn eru seinir að hefna á bardagamanninum ránsins með Lofti. Slíkt heyri eg oft.
Certainly most persons (men) are for [the] most part good-for-nothing with-regard-to valourous-deeds, even-though folk meet with (ie suffer, verða fyrir e-u, Z8) loss. [The] folk (men)-from-the-South are slow to take-vengeance on the warrior for the-plundering, (together) with Loptr (ie in support of, on behalf of Loptr). I hear such often.

Víga-Haukr ok Hallbera, kona hans, fóru í brott af landi, fyrst í Nóreg ok síðan til Grænlands, ok þótti Haukr mikilmenni, hvar sem hann kom. 
Víga-Haukr and Hallbera, his wife, journeyed away from [the] land (ie abroad), first to Norway and after-that to Greenland, and Haukr was-reckoned a powerful-man, wherever he came.

Magnús Markússon fór ok til Grænlands, ok kom ekki þeira aftr. 
Magnús Markús’s-son journeyed to Greenland, and none of them came back.

Guðmundr hét maðr. 
[There] was a man called Guðmundr.

Hann var Hallsson. 
He was [the] son of Hallr.

Hann var einhleypingr ok hávaðamaðr. 
He was a single-person-without-hearth-or-home and a noisy-self-assertive-person.

Hann gerðist fylgdarmaðr Gísla Markússonar. 
He became a follower of Gísli Markús’s-son.

Galti hét vinr Lofts. 
[There] was a friend of Loptr called Galti.

Hann átti hest góðan. 
He possessed a good horse.

Þann föluðu þeir Gísli ok Guðmundr, en Galti vildi eigi selja hestinn ok gaf síðan Lofti. 
They, Gísli and Guðmundr demanded-for-purchase that-one (ie the horse), but Galti wanted not to sell the-horse and gave [it] after-that to Loptr.

Ok er Guðmundr vissi þetta, þá gerði hann eftir hestinum ok ætlaði hjá garði, ok fór eftir honum við inn fjórða mann. 
And when Guðmundr got-to-know this, then he sent for (göra eptir e-m, Z13?) the-horse and intended [to go] by [the] enclosure, and went after it (ie went to fetch the horse) with the fourth person (man) (ie with three others).

Gestr hét maðr ok Gunnarr, Galti inn þriði. 
[There] was a person (man) was-called Gest and Gunnarr [a second], Galti the third.

Þessir menn fylgdu Lofti. 
These persons (men) followed Loptr

Þeir Loftr ok Gunnarr vágu Guðmund. 
They Loptr and Gunnarr slayed Guðmundr.

Þat vígsmál var lagt undir Sighvat Sturluson, því at hann var kallaðr vinr hvárstveggja þeira, Lofts ok Gísla. 
That suit-for-manslaughter was placed under (ie referred, submitted to) Sighvatr Sturla’s-son, because he was called a friend of each-of-the-two of them, Loptr and Gísli.

Gísla þótti sér mjök misboðit í vígi Guðmundar. 
[It] seemed to Gísli much offended for himself (ie Gísli felt offended) in [the] slaying of Guðmundr.

Fyrir víg Guðmundar gerði Sighvatr Loft á braut ór Vestfjörðum ok förunauta hans, þá er til vígsins fóru, ok þar á ofan fégjöld mikil. 
For [the] slaying of Guðmundr, Sighvatr judged Loptr away out-of Vestfirðir ([the] West Fjords) and his travelling-companions, those who journeyed to the-slaying, and a large fine to boot (lit: there-on down).

Þá fór Loftr í brott ór Vestfjörðum ok suðr um land til handa Eyjólfi, mági sínum, ok var síðan lengi undir áraburði Oddaverja.
Then Loptr journeyed away out-of Vestfirðir ([the] West Fjords) and south across [the] land into [the] hands of Eyjólfr, his father-in-law, and was after-that a long-time under [the] protection (lit: movement-of-oars) of [the] Oddaverjar [clan] (ie the folk of Oddi).