Getting there and away|
Getting here is not complicated because there are not that many options. 99% of travellers to Iceland come here by air. That's the simplest way of doing it, and in recent years it has become a lot cheaper. There are two airlines currently operating to Iceland. Icelandair is the bigger one with a lot of history and surprisingly many routes, London and Copenhagen are probably the easiest to get here but Frankfurt, Amsterdam, Paris and more also have daily flights. In the US their destinations include Baltimore, Orlando, Boston and Minneapolis. Their homepage is at http://www.icelandair.net from where you can choose destination-specific sites. The other one is the much more recent low cost carrier Iceland Express which started a few years ago by operating two daily flights from London Stansted and Copenhagen. Now Iceland Express has more routes, from several cities in Europe. The prize of the flights with both airlines varies very much depending on the date and time of the flight and the booking. It is wise to check them both, because even though Iceland Express is a so called "low fares airline" and Icelandair a "traditional" one, the prize difference is not always that big. Both have modern Boeing aircraft and Icelandair has generally a good reputation for service.
Another option is arriving by ship. There are two ways of doing this. One option is a passenger cabin on a cargo ship. This can be enquired about at Iceland travel but is expensive and not recommended. Another option for the adventurous types is Norröna, a passenger and car ferry. Expensive, but can be a fun trip and you can bring your car. It arrives in the outpost Seyðisfjörður which is quite far away from Reykjavik but the 550km road between can be spectacular, flying is also possible from nearby Egilsstaðir.
There are two domestic airlines operating. They are in close collaboration so for both airlines head to Air Iceland, operating between Reykjavik and a few places around the country, and to Greenland and the Faroe Islands. A domestic round-trip with them will cost around $150.
There are no trains in Iceland so most travel around the country is by bus. Often more expensive than flying it's still worth checking for the more closer connection to the country. Distances are relatively short, the ring road around the country being only 1400km long so most bus trips will not take more than 7-8 hours, and then most of them are shorter. The prices and schedules can be found at http://www.bsi.is/.
Car and Motorcycle:
The road network is extensive but cars are recommended over motorcycles because a large percentage of the roads in Iceland are gravel roads. People who are not used to this are advised to take care on the first roads but it gets easy after a while. You can get around using only asphalt roads but you're limited to main roads.
The mountain roads over central Iceland can be very fun to tackle in the summer but most need you to have a high 4x4 vehicle and some knowledge of driving over unbridged rivers. The car rental company will give good advice, but if you bring your own car, be sure to know what you are doing. If the only thing you need is going between places a normal car will do just fine although some roads can be a hassle in the winter. If you plan on driving in the winter it is recommended to check the condition of your roads first. This can be done on the site for the bus schedules mentioned earlier. If you plan on using a motorcycle this can be a very cold experience because even in the summers it can be very cold in mountain roads.
Hitchhiking is relatively easy in Iceland although it's not always reliable because of little traffic. It's rather safe and can be a cheap way to get around. Before you go, you should know a bit where and when to go. The biggest danger in hitchhiking in Iceland is the weather, combined with too few cars. It is possible to end up in a middle of a snow storm any time of the year, though not that likely in the summer (June - August). On the Ring Road (road no. 1) there usually is enough of traffic during daytime, but it can be risky to go on the smaller roads.
Bicycling around Iceland is rather popular in the summers but can be very difficult because of the uneven terrain. Be prepared for all kinds of weather too. Not recommended except for the most serious ones!
A GOOD CAR RENTAL : http://atak.is/
If you go to Icealand and like to rent a car try them and tell them I sent you.
All the best