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.

We are using Regent Air for the first time and got very good rates (we're doing the B2B) with AA coach non-stop to Miami with a forced overnight on Regent's nickel at Embassy Suites. We return on an AA Non-stop from Heathrow to LAX in Biz Class.