MorwenEdhelwen1's link has a nice long description.

Also, Faroese dance @ Wikipedia

Kvæði @ Wikipedia (Kvaedi) -- on the ballads themselves. There are some useful English-language links there.

The Association for Faroese Dance has some more videos and info. Unfortunately, both the "EN" and "DK" translate buttons don't lead to anything. :-\

A commenter on one video says,

"Here in Belgium/Flanders we also have the 'Roelantslied', a 12th century Middle Dutch translation of the original 11th C French 'Chanson de Roland'.
The dance was very common as well over here, known as the 'rondedans' or 'reidans'. But it sort of fell into disuse throughout the years.
I never realised the song/poem had travelled as far as the Faroese islands. "

~ Becky in Tucson