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Advice needed for May '06 trip to Iceland

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Hello, my husband and I are in the early planning stages for a trip to Iceland in early May '06. We can go for no longer than a week and are looking into some sort of fly-and-drive package, so any advice regarding tour operators, guide books, rental car agencies, etc. would be appreciated.
Also, we are trying to decide whether we want to travel from Reykjavik towards the north (Akureyri, Myvatn, Husavik areas) or towards the southeast (Heimaey Island, Skaftafell, Hofn). Any thoughts?

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