Obviously, you'll be renting a car. Rule #1: DO NOT, I repeat, DO NOT honk your horn. It can only be used if it's a true life threatening emergency. Otherwise, it's a ticket, guaranteed. Be sure to bring warm clothes. Iceland is a wind swept rock. August will be warm, maybe. Depends on what you consider warm. They will be hanging their fish out on the racks to dry. You'll know when you get downwind of one. It's unforgettable. At my Radar Site, we had a couple of these racks near us. Some mornings, you weren't interested in eating breakfast. Then there was the fish processing plants.........it's hard to escape the odor because fishing for cod is a major industry.
Iceland is big into geothermal. There are some geothermal spas you can walk into. Well worth the trip.
Sweater making is virtually a cottage industry in Iceland. The sweaters are beautiful and very cheap (but not cheaply made). Rekyavik is well worth the walking tour BUT if the sun is out, and you're near the University, please don't oogle the topless students working on their tans. It's not only rude, but it can be distracting when you stumble into traffic.
If you're acquainted with the 2-3 foot personal space we in the states and elsewhere tend to respect (what was your reaction when someone got in your face?), be advised that such personal space does not exist. There can be two or three standing on the sidewalk, chatting away and they'll barge right through the group.
They love their clear liquors. Vodka and the such. Watch out for a liquer called Brenavee (not the correct spelling but how its pronounced). That stuff makes lighter fluid taste palatable.
All in all, I enjoyed my year in Iceland. The Icelandics are very clanish, but once friendship is made, it's for a lifetime.
Try the fish dishes when in the restaurants. They know how to cook fish.
Be sure to visit the Viking Museum. They've done a lot of quality restoration and it's really worth the time. Same with the Viking villiage.
I see you're in PA. Traffic will be a real eye-opener. There are not that many major cities in Iceland. I so seldom drove while up there, that when I flew back to the States for leave and on to my next assignment, I had to readjust to the hectic driving style we have. And you people back east are even worse than we are.
One final caution: I know this doesn't apply to you and yours but I'll pass it along anyway. The Icelandic Police are no b.s. mess around types. Just because they don't carry arms, doesn't mean they're push overs. This also extends to passing through customs and immigration. All baggage is inspected in one form or another. They are very serious about outsiders coming into their country and polluting their life standards. You'll see when you get there.
Sounds like you plan on being there for a month or so? Go for a pony ride. I'm serious. Ya gotta do it, if for nothing else than to say you did. Just make sure your teeth are well anchored. Take a road trip around the island. Don't worry about getting lost, there's only one major highway (unless they've added more) that goes all the way around the island.
I kinda envy you for the trip. Knowing what I now know about Iceland, it's really quite the opportunity you're taking advantage of.
Finally, I made several friends amongst the Icelandic local hires that worked at my site. When they found out I was from Washington, they started asking me if I knew so and so, who lived in Blaine, WA, which is about 15 miles up the interstate from where I live. Blaine has a large settlement of Icelandics and it turned out, I knew some of their relatives. Small world.
One final thing: Bring a good book for the flight up. It is a l-o-n-g flight. Probably won't be as bad for you, since you won't be flying cattletruck airlines.
~Dave
No, I've never been there but I've wanted to go my entire life. I have rented a house about 2 hours outside of the captial, in the country, and an apartment in the captial itself; both for the entire duration of the trip.. We will split our time between the two places.