Gjáargarður is the coolest guesthouse I've ever stayed at. The owner is friendly, helpful, and willing to do just about anything to make your stay more enjoyable.
The building itself is a bit of a maze, but in a good way. You never know what you're going to find around the corner or up a staircase.
If you can, try to stay in one of the rooms in the eves over top of the second dining room. They are big, beautiful, and have a balcony.
I can't wait to go back!