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There was dwelling at Eyjardalsa in Bardardal a priest named Steinn, a good farmer and wealthy. His son Kjartan was grown up and was now a fine young man. Thorsteinn the White was a man who dwelt at Sandhaugar to the south of Eyjardalsa; his wife Steinvor was young and of a merry disposition. They had children who at this time were yet young.

One day that winter after Yule Grettir went to Eyjardalsa and met the priest, to whom he said: "I see, priest, that you have little belief in what I say. Now I wish you to come with me to the river and to see what probability there is in it." The priest did so. When they reached the falls they saw a cave up under the rock.

He went home to Eyjardalsa and carried the skin with the bones in it into the vestibule of the church together with a rune-staff, upon which were most beautifully carved the following lines: "Into the fall of the torrent I went; dank its maw towards me gaped. The floods before the ogress' den Mighty against my shoulder played"; and then: "Hideous the friend of troll-wife came.

When the summer was passing away, Steinvor at Sandhaugar gave birth to a son who was named Skeggi. He was at first fathered on Kjartan, the son of Steinn the priest at Eyjardalsa. Skeggi was unlike all his family in his strength and stature. When he was fifteen years old he was the strongest man in the North, and then they put him down to Grettir.

The entrance was in the side wall of the hall under the back gable, and near it was a cross bench upon which Grettir laid himself, keeping on his clothes, with a light burning in the room. So he lay till into the night. The mistress reached Eyjardalsa for mass and every one wondered how she had crossed the river. She said she did not know whether it was a man or a troll who had carried her over.

Their place was generally thought to be much haunted by trolls. Two winters before Grettir came North into those parts, Steinvor the mistress of Sandhaugar went as usual to spend Yule at Eyjardalsa, while her husband stayed at home. Men lay down to sleep in the evening, and in the night they heard a great noise in the room near the bondi's bed.