Add me to the list of born-again Icelandophiles. I was there a few months ago and am already planning my next trip. Totally recommended! Since it was my first time there I mostly hung around Reykjavik, Keflavik and the Golden Circle (and let me add that when they suggest that you don't stand downwind of the Strokkur Geysir, they mean it!). Since I was there before high tourist season the prices weren't as harsh as I was expecting, and although the weather was really rainy it detracted not one bit from the beauty (can't complain about the nightlife either).

I'd like to go back at a time when I can add on a day trip to Greenland and hopefully look around further outside of the capital (thinking of Jokulsarlon or Akureyri).

As for food, the hotdogs (pylsur) at Baejarins Bestu are legend, and the local yoghurt (skyr) is worth a try as well.