Well, finally bit the bullet and booked it. Just wanted to share some things I learned for leg 2 folks.

--We normally do Regent Air, but this time their air price is VERY overpriced
--ICELANDAIR seems to be the only option for us however...the glitch is that there are no direct flights on Icelandair from London which meant an 11 hour trip home
--Another way to book your flights is to take advantage of the many international airfare sales going on now or your frequent flyer points and fly directly to London for a morning arrival. You can fly coach to Iceland on a 1pm flight and arrive by 3pm for $140 from Heathrow. This way you can take a direct flight home from London on May 31 or whenever you leave. You have many more options for flights home.
--I found a very nice airfare sale going on at BA. For those of you on Leg 1 (even though you don't need the trip over)...it may pay for you to buy a round trip ticket. The prices were that good!!!

Hope this helps. We saved a lot of $$ and time to get home at the end of the trip. We had the weekend at the beginning of the trip for some flux into Iceland.