I’ve been there & it’s certainly worth a visit if you wish to experience some incredible natural beauty that you’ll have a tough time finding anywhere else…geysers, glaciers, mountains, ocean, and moon-like surfaces. Reykjavik itself is worth half a day…no big hitter sites but a cool city. You’ll need to visit the one tourist stop just outside of town, the Blue Lagoon. You can rent a car at Keflavik and don’t have to go very far outside of Reykjavik for a one-day, self-guided loop tour where you can straddle the North American and Eurasian tectonic plates, check out an ocean-side lighthouse way up on a cliff…ocean crashing against rocks below, visit the site of the first and oldest parliamentary republic meeting, check out sheep grazing, visit lakes/glaciers, etc. Also, research the Golden Circle tour route. There’s little to no traffic on the roads once you leave the city, and anyone you might run across will be local. Check out Iceland’s main tourist site for some ideas: http://www.goiceland.org/ If you’re into clubs, Reykjavik is one of the top party spots in Europe. Go to the library or a bookstore and check out Lonely Planet and Rough Guide…they both publish a guidebook for Iceland. As previously mentioned, you can stay for up to 7 days on the front or back-end of your travel at no extra charge on Icelandair. Happy travels!
Summer is best, but early September could be perfect. I was there in June...sun doesn't set. Yes, it’s possible that the volcano could impact travel to Iceland or anywhere in Europe for the foreseeable future. I wouldn’t let it affect my planning, but I would work in a contingency plan and would certainly keep abreast of conditions as the travel dates near. BTW, Icelandair doesn’t fly from BWI anymore…you’ll need to go through JFK or Boston.