I was in Iceland for a few days in Nov 2014 for Doug & Sloan's wedding. We drove right thru Reykjavik -- didn't even stop! --and instead spent 2 days about 2 hrs outside. Here's what we found...
Jamie Huson: North of Myrdalsjokulsvegur is a metal pipe gate on the left off highway 1. Enter the gate and follow the tracks into the gravel. Don't stray into the sand or your car will be stuck