Beautiful!
I've been trying to see the aurora for years. We went to Iceland in February of 2012, but although it was brilliantly sunny during the day, it clouded over every night. We learned too late that we really needed to head north, way out of Reykjavik, to have a decent chance. Still, I love Iceland, what tiny portions I've seen (I've been 3x, but all to Reykjavik and nearby). Geysers, geothermal power plants, waterfalls, volcanos, friendly people, and horses! Some of the latter almost ended up on our dinner plate, but thankfully the waitress let us know...
My mom (who's a very active 80) would go again in a heartbeat if we had a decent chance of seeing the aurora (it's pretty much the final item on her bucket list). You don't do Air B&B, do you?