ég er ugla
su-sumar ugla
ég er ugla
su-sumar ugla
English translation:
I'm an owl
su-summer owl
I'm an owl
su-summer owl
su-sumar ugla
su-sumar ugla
su-summer owl
su-summer owl

actually, the girls sing in icelandic on thi song. the lyrics are same as in "Ugla:"
ég er ugla su-sumar ugla
ég er ugla su-sumar ugla
English translation:
I'm an owl su-summer owl
I'm an owl su-summer owl
p.s.: please, next time make sure you add the accent marks where needed on the song titles.

I believe they use a musical saw on this track.

indeed there is one, and they use it in many other songs as well. as a matter of fact, the short song "Saga" in performed solely with them.