Iceland: What should we pack?
Bring sturdy walking shoes for all the wonderful walks/hikes you will be doing on uneven surfaces. Layering is a good idea. I brought a parka when I was in Iceland in August and wore it everyday. A waterproof jacket is very useful as well.
Charleston: What's one city where could spend the rest of your life?
Charleston SC. It has great restaurants, beaches, theater, music, friendly people, etc. and a good warm climate (no snow). I would never live anywhere else!
Europe: Has anyone flown Icelandair to Europe?
Be warned> You will have to buy your food and beverages on Icelandair flights and they are expensive. The terminal at the International airport is very nice and offers great meals.