There are a few you guys could try contacting. See if they are willing to strike you a deal if you buy a bulk of hours.
www.flugskoli.is
www.flugskolinn.is
Less likely, but not impossible contacting - really not their thing, but who knows...
www.geirfugl.is
ps.
JAA licences are valid up here in the north so no conversion or validation process. Just a simple renters checkout should be enough.
IH