I've been as well. If you're there for more than a day I highly suggest renting a car and seeing some of the countryside. When we went we were on a package that included discounted car rental. As with everything else, it was outrageously expensive if you didn't book it in conjunction with an Icelandair package. Oh, and for anybody going the Blue Lagoon is not to be missed. We were there in a raging snowstorm and were the only people there. It was GREAT!

Iceland air site is really slow!
 

I have been trying to nagivate around on their site and price flights - I sure hope the packages are a better deal because the best airfare I can get for Oct is $800+ - give me a break!!!!

I even called their 800 number and that took 30 minutes - whoa!

Their phone number is quite slow. I don't know how long you want to stay, but there's a four day maximum stay fare for $470 including taxes on Travelocity. Not exactly cheap, but better than $800. Good luck with your trip.

1) Wait until winter.
2) Sign up for "Lucky Fares" on the website. Each week they'll e-mail you with a special set of fares to Europe and Reyjakvik, usually in the $250-$300 R/T range.

Sounds great, I do plan to go.

But there has been VERY VERY little talk of the interior of the island. Did anyone get away from the city and experience the rest of the island?!?

I spent two weeks backpacking the interior. It is very different and very far away from most things. If you don't plan on doing long distance backpacking, your choices are getting a 4x4 and know how to cross rivers in it after the snow has melted or maybe take one of those horse trips.

There is just not any real infrastructure in the interior. You pretty much have to take care of yourself out there.