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7 days in Iceland. Need help

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We are in the beginning stages of planning a week long to trip to Iceland for July. I know we want to spend some time in Reykavik and then go off to see the countryside. I have seen so many wonderful trip reports here that I am overwhelmed. Where to start? Assuming we spend one or two days in the capital, where should we concentrate the remaining 5 days? I know trying to do the whole ring road is too ambitious. Where should we focus? If possible, I would love to stay on a farm for a night, would love to hike a bit, snowmobile and raft/kayak. Suggestions?

Thanks so much.

Taitai

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