30.4.2010
First settler
Much of the above information comes from Landnámabók (Book of Settlement), written some three centuries after the settlement. Archeological findings in Reykjavík are consistent with the date given there: there was a settlement in Reykjavík around 870.
First settler 
http://netsaga.is/media/files/s-dream.mp3
The first permanent settler in Iceland is usually considered to have been a Norwegian chieftain named Ingólfur Arnarson. According to the story, he threw two carved pillars overboard as he neared land, vowing to settle wherever they landed. He then sailed along the coast until the pillars were found in the southwestern peninsula, now known as Reykjanesskagi. There he settled with his family around 874, in a place he named Reykjavík (Bay of Smokes) due to the geothermal steam rising from the earth. This very place would eventually become the capital and the largest city of modern Iceland. It is recognized, however, that Ingólfur Arnarson may not have been the first one to settle permanently in Iceland — that may have been Náttfari, a slave of Garđar Svavarsson who stayed behind when his master returned to Scandinavia.