don't know if you've already gone, but i did a 10 day there in the spring and stayed mainly at the hostels www.hostel.is
, and had great luck. the cost was aroudn $20 a night USD, though i think the ISK has increased in value a bit. either way the hostels in akureyri, skogar, hofn, and reykavik are spotless. the salvation army hostel in downtown reykavik is not as nice, but it is right downtown and close to everything. just don't get a single there (it was all they have left so i was forced to), they aren't worth the money. i used both lonely planet and rough guide to get around up there and between the two of them i didn't have any problem.
as far as where to go, it depends what you're looking for. skaftafell national park in the southeast is a hikers dream. akureyri in the north is a great town with an nice bar and music scene, and it's really close to Myvatn, where a lot of the volcanic attractions (geothermal cones, bubbling mud, volcanos, craters and other stuff) are. for reall rugged/isolated stuff, Ísafjörður is a tiny fishing town in the shadow of the westfjords. very cool to get up there, and as much civilization as you'll find in that lonely corner of the country.
iceland is amazing. i think it's a great place to visit. and if you're used to travelling in scandava you'll be used to the exorbitant prices.
<div class='quotetop'>QUOTE(joeharley @ Sep 9 2005, 06:28 PM) [snapback]76399[/snapback]</div>
I have been going to scandinavia..Like to try Iceland. Anyone know what city/ where to stay (that is )affordable..and what to check out...also, where in Stockholm & Gothenburg while in Sverige?
Thanks for any help, Josef