परमर्षिः an eminent ascetic, वसिष्ठः Vasistha, परमप्रीतः exceedingly delighted, तत् अन्तःपुरम् that inner apartment, आसाद्य having reached, तं जनम् those people, व्यतिचक्राम passed by, विवेश च also entered.

Having reached the inner apartment, the eminent ascetic, Vasistha felt very happy. He passed by the people and entered the inner apartment.