TIP: Bring lots of money, because beer is super expensive! Thule is a common beer there. The challenge for brewing beer in Iceland is that its very hard to grow ingredients, so everything has to be imported.
I was there in 2009 for an event called Innipukinn, and saw a couple of Icelandic bands perform. Agent Fresco will be playing at Secret Solstice on June 17. Google their album "Light Bulb Universe" it is amazing, and they really put on a good show. Another band i was really impressed with is Dikta.
Here is a link to a few of their tunes:
Agent Fresco - Silhouette-Palette
Agent Fresco = Eyes of a Cloud Catcher
You can give just about all their songs a listen on their website:
Agent Fresco
Have a great time. Drink until the sun goes down (which it won't, on account of how far north you are
)