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Reykjavik

Iceland was the 9th country in the world to legalize same-sex marriage in 2010.

Laugavegur Street is the centre of nightlife and shopping and the location of Samtkin '78 which is the LGBT centre in Iceland.

Do not get discouraged by the practically non-existant list of gay bars or other venues as the LGBT community is an integral part of the society in Iceland. All venues are gay-friendly!

Blue Lagoon geothermal spa is a must if you visit Iceland. The water and the silica mud are believed to have helpful effects on your skin.

Golden Circle Tour is worth considering as it shows the most important sites in Iceland. You'll see the Gullfoss waterfall, geothermal Haukadalur and Ingvellir natural park among others.

"Whale Fjord" is a beautiful site 30km long and 84m deep. It's a great place to go hiking also because of the ruins from WWII. 

Practical info:
A visa is required for people who do not have American, Canadian or Scandinavian passports or a passport issued by one of the European Union member states.
Iceland's currency is krona "crown" or ISK, however some tourist business venues will accept US dollars or Euro.
The native language is Icelandic but most people speak fluent English.