They've got some great weekend offers on and it appears that they own the two main hotels that come as part of those packages.  But we decided to go with just the flights and put together our own package.

#Added 20/11/11 - Easyjet are adding Reykjavik to their schedules from 27th March 2012.

We stayed at the Radisson Blu Saga, at Hagatorg http://www.radissonblu.com/sagahotel-reykjavik  This is a short walk out of town.  Reviews on TripAdvisor seem to mention the distance from town a fair bit, but really it's only 10mins and it's not a hard walk.  Besides, you're in Iceland, there's going to be a little bit of walking and experiencing the elements!  We didn't try out the other facilities in the hotel, but the staff were friendly enough and the rooms functional and comfortable.  Very pleased to find free wifi.

All of our tours were booked with Iceland Excursions http://www.grayline.is/.  The staff in their downtown Reykjavik office were very helpful, especially as we were in there every day.  The coaches were in good working order, comfortable and not too hot/cold.  

We booked the following:

I would happily book with Iceland Excursions or Arctic Adventures again.

Dinner at Tapas Barinn was very tasty and gave us the chance to try a couple of Icelandic delicacies but as a tapas portion http://www.tapas.is/index.php?option=com_frontpage&Itemid=69&msl=english

B5 is a bar that we found by accident. http://www.b5.is/  From outside it appears as a normal bar, the usual stools, tables and neon lights behind the bar.  But turn right at the end of the bar and there's a more seedy looking burger joint.  It turns out that there's a whiskey bar and lounge downstairs too but we didn't experience that.

If you visit Iceland you will be instructed to try the Best Hot Dog, which can be found at "Bæjarins beztu pylsur" which literally translates to 'The best hot dog in town'.  This is just around the corner from the Iceland Excursions office.  Yes, the hot dogs are good.  http://bbp.is/en/

We weren't in Reykjavik long enough, but apparently both the Saga Museum (http://www.sagamuseum.is/enska/english.html) and the Settlement Exhibition (http://www.reykjavik871.is/) are worth a visit.