We stayed in a mix of hostels (shared bathroom, private room) and hotels. Honestly the hostel we were in wasn't that great a deal, I'd just go with a hotel next time (this was in Reykjavik). We also rented a car, very necessary. You don't want to camp or try to rely on public transport (or private tours) for anything but a few days staying there in my opinion, especially in winter.
Photos soon, soon.