This passage is reproduced unadapted from Herodotus, Histories 1.34–45. Herodotus writes in the Ionic dialect (see Introduction). You will find that you get used to this quite quickly, and the vocabularies will help you as well. However, before you start, you may want to look at GE pp. 359–360, #333–334 ‘The Dialect of Herodotus’.
It is very important to read both the introduction on pp. 225–226 of RGT and the beginning of the story, pp. 227–229, which is translated for you.
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1 νέμεσις ‘retribution’. This is not punishment for an evil act, but punishment for ‘thinking more than mortal thoughts’. Perpetual happiness is the prerogative of the gods and not of man. Croesus commits an act of ‘hubris’ by exhibiting pride in his continuing happiness, and thus attracts the vengeance of the gods.
2 ἑωντόν = ἑαντόν.
ὀλβιώτατον Note the emphatic position.
οἱ ‘to him’.
2–3 ἐπέστη ὄνειρος The dream is personified; it ‘stood over him’, or ‘stood beside him’.
4 διεφθαρτο Literally this means that ‘he had been destroyed’, a brutal word for ‘handicapped’ (cf. ‘written off’), but it shows Croesus' feeling that he had only one son, for all practical purposes.
5 ῷν = οὗν. Note this carefully. You will meet it frequently, and it is always easy to confuse it with ὣν ‘being’. Apart from the accent, its position near the beginning of a sentence should help to distinguish it.