Our first stop was to Reykjavik. We spent our first night in the City Hostel... which was not the best hostel I've ever been in, but we had a family room with private bath, and it worked out just fine. There is this cool Viking ship sculpture near the bay. We also saw the cathedral and went up in the tower to look all around.
Rainbow over Gulfoss. Notice that there are no "safety precautions" to keep you from falling down the waterfall. We were very, very careful with the kiddos here.
This is a cool waterfall because you can hike behind it.