I can't believe this was the first chapter I read of this series, and now I'm back again after a week to finally understand what is going on.
The most surprising to me is all the comments in the past few chapters that couldn't understand the plot, I guess having read all of it in just a week helped a lot in following it with no problems.
Funny thing, while true I haven't read this chapter carefully a week ago, I still misunderstood a lot. For example, I thought Brunhilde and Hagen were the same character, and that Hagen was the actual mother of Dietrich. I did understand the boner-sword is powered by masochism though(I didn't understand how a sword in the ass wouldn't kill him though, but now I know...it's a magic sword, that only can hurt you if the wielder wants it to(which only happens once in the entire manga))