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Iceland Entire Ring Road or South/Interior

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Hello again,
With the help of folks on this board, we have decided to go to Iceland in early July 2006. Now comes the trip planning questions!
We are trying to decide whether we should drive around the entire Ring Road or drive along the South and then cut through the Interior/Highlands (we'll rent a 4 wheel drive if we decide this option). We intend to camp and stay in hotels along the way.
We are in our early 30s and love to hike. We have a total of 10 days for the trip either around Ring Road or the South/Interior.

Thank you in advance for any assistance!
Take care,
Melissa

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