There was a king in Jötunheimar called Guthmund. He was a mighty man among the heathen. He dwelt at a place called Grund in the region of Glasisvellir. He was wise and mighty. He and his men lived for many generations, and so heathen men believed that the fields of immortality lay in his realm; and whoever went there cast off sickness or old age and became immortal.
After Guthmund's death, people worshipped him and called him their god. His son's name was Höfund. He had second sight and was wise of understanding, and was judge of all suits throughout the neighbouring kingdoms. He never gave an unjust judgment, and no-one dared violate his decision.
There was a man called Hergrim who was a giant dwelling in the rocks. He carried off from Ymisland Ama the daughter of Ymir, and afterwards married her. Their son Thorgrim Halftroll took from Jötunheimar Ögn Alfasprengi, and afterwards married her. Their son was called Grim. She had been betrothed to Starkath Aludreng, who had eight hands; but she was carried off while he was away to the north of Elivagar. When he came home he slew Hergrim in single combat; but Ögn ran herself through with a sword rather than marry Starkath. After that Starkath carried off Alfhild the daughter of King Alf from Alfheimar, but he was afterwards slain by Thor.
Then Alfhild went to her kinsfolk, and Grim was with her there till he went raiding and became a great warrior. He married Bauggerth the daughter of Starkath Aludreng and set up his dwelling on an island off Halogaland called Bolm. He was called Ey-grim Bolm. His son by Bauggerth was called Arngrim the Berserk, who afterwards lived in Bolm and was a very famous man.
II.[°] There was a King called Sigrlami who was said to be a son of Othin. His son Svafrlami succeeded to the kingdom after his father and was a very great warrior. One day as the King rode a-hunting he got separated from his men, and at sunset he came upon a big stone and two dwarfs beside it. The King banned them with his graven sword from entering the stone. The dwarfs begged him to spare their lives.
The King said: "What are your names?"
One of them said his name was Dvalin and the other Dulin.
The King said: "As you are the most cunning of all dwarfs you must make me a sword, the best you can. The hilt and the grip must be of gold, and it must cut iron as easily as if it were cloth and never rust; and it must bring victory to whoever uses it in battle and single combat."
They agreed to this, and the King rode away home.