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 mildum ‘generously’: (a) Kock (NN §1176) seems to be correct in taking this as an adverbial dat. Adverbial use of an adj. in the dat. pl. is possible, though restricted (see NS §110 Anm. 2 for examples such as stórum ‘greatly’, bráðum ‘hastily, soon’), and the sense could be ‘by generous (acts)’. (b) In terms of grammar, the most obvious solution is to take (einkar) mildum ‘(exceptionally) generous’ as an adj. qualifying húskǫrlum ‘retainers’ (so Konráð Gíslason 1895-7, followed by Skj B), but it seems unlikely that the housecarls, rather than the sovereign, are praised in this way.