Iceland is very beautiful, and well worth renting and flying. I rented TF-FHO, a 172, about 5 years ago, but it does not seem to appear on the register any more. It was expensive, but worth it. Though I could have gone the whole check out and rent route, instead, I just took one of their instructors along, it was easier.
From Reykjavik, fly south east a bit over an hour to Vestmannaeyjar, Walk to town from the airport, absolutely beautiful, and you can hike on the volcano of 1973.
