Paraphrasing is rewording the original material into a slightly shorter segment:
"In Norwegian legend, while trolls may be troublemakers, they are not portrayed as evil. Norwegian parents may even jokingly say that their child 'has some troll in them' if they misbehave. Sometimes, Norwegians are fond of the idea of trolls."
Quotations. When quoting from a passage, the segment from the original source must be identical, and you must give credit to the author. Here's a passage that quotes and credits the orginal passage:
Norwegians have a positive view of trolls in their legends. In his work Norwegian Myths and Legends, Donald Howard states that "Norwegians have a fondness for trolls--or at least the idea of them" (page 98).
Summarizing means putting the main idea into your own words. Here's a sentence that summarizes the passage:
In Norway, trolls are not seen as evil, they are seen as mischievous - some Norwegians are actually fond of them.