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Planning one week in Iceland

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We're trying to plan a one week trip at the end of May to a European destination. We're thinking about Iceland, but are a bit intimidated by figuring out where to go on such short notice. Can you just base yourself in Reykjavik and do day trips? We're interested in outdoor activities, but not camping. Can we sign up for tours once there? (We aren't crazy about overly structured organized tours.) The Iceland Air website seems to offer information about a lot of tours, but everytime I try to find information about it it just kicks me into a flight search page (and the flight I asked for cost more than $5000!). Thanks for your help.

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