friends said the lobster was really good and better than here (although smaller).
Yeah, we had some of their langoustine tails at a place called Pakkhus in Hofn, on the east coast. They're very narrow - the tails are about half as wide as the lobster tails we get here. Delicious, but pricey. 2/3 lb of split tails ran about $70+.
Gas was also an interesting experience, as there are no gas station attendants. Gas is handled almost like our ATMs - you drive up to a pump on the side of the road or at the back of a grocery store's parking lot, insert your card and pump your crazily expensive gas (about $7 a gallon right now). We filled up every time we saw one, because once you left a town it was sometimes several hours of driving before the next pump.
Most of the roads aren't paved, either, other than the main ring road and the roads around Reykjavik - so we went with an SUV to tool around, which wasn't exactly great on mileage. We met an Australian guy who used to derby race, and he said the trick is to go faster over the heavily potholed roads so that you don't sink into each one and instead skip along the tops - it really turned out to be less bumpy, but driving at higher speeds on largely dirt/gravel roads with no lights and steep dropoffs was certainly not dull.