I see my name has been mentioned :-)
My number one tip is to get the Cicerone trekking guidebook, written by Paddy Dillon (AFAIK the only English guidebook on trekking in Iceland). Can be purchased as an ebook on cicerone.co.uk.
For non-trekking information, the Lonely Planet of Iceland is sufficient. Also purchasable as an ebook on the lonelyplanet.com.
My number two tip is to walk the Laugavegurinn as late as possible in August (or even better, first half of September). The trail is justifiable one of the great walks worldwide and thus very popular during summer months. Expect Lord of the Ring type landscape.
Third, do not start at Landmanallaugar, but at Rjupnavellir, thus extending the Laugavegurinn by 2,5 to 3 days. You will meet very few hikers along this extension (or none at all). This extention is way marked (white sticks planted in the ground). Rjupnavellir is along the REK-Landmannalaugar bus line. It is possible to walk from Rjupnavellir to Skogar in +/- one week.
Gpx file: http://www.wikiloc.com/wikiloc/view.do?id=933072
Public transportation options: bsi.is is the site to start with (BSI is the long distance bus station in REK), providing information about bus routes, timetables and ticket prices.
Oh, there is no need to purchase tickets online: a seat will always be guaranteed.
From the BSI station, it is possible to send (food)parcels to mountain huts served by bus services (e.g. Landmannalaugar), making UL backpacking possible. One can also send parcels to the national park HQ of Skaftafell, although a small holding fee will be charged. I suppose sending parcels to hotels or guest house will not be problem, providing they are along a bus route and perhaps also providing prior arrangements are made with the hotel manager in question.
If you plan to drive, a high clearance 4×4 is strongly recommended: a lot of roads in the interior of Iceland involve fording (big) rivers (… and not always with succes).
Other world class trekking areas: the ‘Askja Trail’ (apparantely used by Nasa astronauts in preparation of the Apollo missions. Yep, it does look like the moon) and the ‘Grænalón trail’. But there are plenty more areas I still have to visit. I have been told the Westfjords are also very rewarding, providing one is experienced (much of it is off trail and – depending of the choosen route – involves low tide walking along the coastal cliffs).
Grænalón trail is a hidden gem in Iceland. It is not waymarked & off trail, full of variety and easily accessible from REK. One will probably not see a sole, except for the Skaftafell part (day hikers).
The ‘Grænalón trail’ thus includes Skaftafell, which reminds me a lot of Torres del Paine. It also includes a spectacular 10k+ glacier grossing (make sure you have a gps + gpx-route as you might find yourselves in a desert of ice if it fogs up while crossing the glacier).
A rope is normally not necessary as the glacier is normally ‘aper’ (= not covered with snow), but do bring (micro)crampons & walking sticks as it might make jumping over glacial rivers and small crevasse much safer (there are small rivers ON the glacier – you might find yourself in big trouble when slipping in one of these rivers without decent pointy traction).
Getting off and on the glacier might involve zigzagging along big crevasses, but nothing an experienced and careful backpacker can manage.
Gpx-files can be found online, but – as mentioned in a previous post – be aware that crossing the Nupsa river might be problematic to cross, forcing you to backtrack and look for alternatives (read: keep some spare days). The same counts for the area around the Grænalón lake (quicksand).
A taster (or spoiler :-)
Wim