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Famliy layover in Iceland - Suggestions?

Hello, My family (Mom and Dad plus 5 year old and 1 year old) are taking advantage of Icelandair's Reykjavik stopover option enroute to a summer trip to Sweeden. Staying at the Guesthouse Odinn, anyone ever heard of this? Any better suggestions? Would genuinely appreciate any ideas on fun Icelandic things to do with kids! Thanks,

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The Blue Lagoon is a must definitely an "otherworldly" experience. It's rather touristy, but unique, nevertheless. If you have time, also consider the "Golden Circle" tour from a local tour provider, such as this one: I had a great experience with them I actually left my digital camera on their tour bus and it found its way back to me thanks to responsible employees! :) Have a great time I visited Iceland last March when the volcano was erupting and I'm dying to go back. -Leana