Reykjavik is a very beautiful little Capitol. It contains 200k of the total 320k Icelandic populations (that's 3 MCGs.
Took a tour around town this morning. Drive to the presidents house, the house where Regan and Breshniv held there first summit to end the cold war and numerous other interesting sites. There was Olympic fever in the town centre (see photo) ie there are sun lounges in the square so people can laze around what hong the big screen . More buz here than in London it seems.