Rekjavik was great! The only reason I spent 4 days there was that the transatlantic fare was so cheap with Icelandair compared to Air France and others that I could not resist a no-penalty stay over for any period of time. From there you can go anywhere in Europe for the same price.
Reyjavik is a real party town on weekends -- very noisy and rambunctious (lots of booze and sex in the streets at 5am when leaving for London) but a lot of fun especially for the under 30 crowd.
Did a half day tour of waterfalls and geyser. Tempted by Aurora Borealis but passed!
Kinda expensive town but easy to get by on a budget with a bit of research especially if you rent an apartment suite.
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