Brownie-suggest you do a keyword search on Iceland-unfortunately this county doesn't warrant much conversation, especially outside of Reykjavik. We're heading there shortly, and found some older posts helpful with information. Have fun !

Do the Blue Lagoon near Keflavik - really neat. I especially enjoyed Landmannalaugar (but difficult to get to w/o 4WD). Then we crossed to Myvatn across the middle, on the Sprengisandur route - amazing, like you're on the moon!!! Really cool, we stayed overnight in a cabin in the middle of nowhere, and had the most amazing hikes!
Iceland is very very scenic.

If you're going in the summer, Thorsmork (Thor's woods--it's spelled with the Icelandic letter that looks like a P that has slipped) is great for hiking and walks of various lengths.

Horseback riding across the lava fields is good, as well.

Have a great trip!

Thanks for the replies. A few added queries ...

Mr. nospam(?) - "Then we crossed
to Myvatn across the middle, on the
Sprengisandur route - amazing, like
you're on the moon!!"

Did you do that with a 4WD? We haven't had any experience with 4WDriving ...

Amy - where exactly is Thorsmork?

Thanks

Myvatan is well worth a visit. Don't miss the Black Castles, really strange lava formations. If you are a bird-watcher it is a popular place for aquatic birds. It's worth remembering that in English it means Midge Lake and can live up to its name. If you are sensitive, take the kind of midge veil they use in Scotland and some good insect repellent.

I visited Lake Myvan and Akureyri area last June by bus. Akureyei is a post card like pretty town with interesting buildings. The craters and lava fields around Lake Myvan are very unique, but the black flies were absolutely killing for someone sensitive to bugs.

Tho'rsmork-spelled-with-the-pregnant-I-or-
slipped -P and with two dots above the o (boy, do I need an Icelandic keyboard!) is located in south-central Iceland; you can day trip from Reykjavik or do overnight.

T(same letter!)hingvellir is also quite pretty for mild walk arounds and fun in the fissures.
(also near Reykjavik)

Skogar is in the general region of Thorsmork; there's a great little folk museum there.