Mitch,
There's an excellent seafood restaurant by the harbor in Reykjavik. It's in an old sailing boat. The local cod and lobster are both superb. There's also another seafood restaurant near there (don't remember the name but it's advertised.) We'll try that one when we get there in May. Did you know you can get your bus ticket from the airport to city online?
http://www.re.is/Flybus/ You can arrange drop off at most local hotels. The 1 hour trip would cost a fortune by cab.
Jim
