REYKJAVIK, Iceland -- The world's best hot dog stand stood before us, beckoning with its cheap prices and endorsement from former President Bill Clinton.

For years, my husband and I had heard about how Iceland was one of the world's most expensive destinations, a place where a McDonald's extra value meal can set you back more than $15.

But here at Baejarins Beztu -- literally, ''town's best'' -- were hot dogs described as the most delicious on the planet, slathered with onions, mustard, and ketchup, for only 250 krona each -- just over $2.

This city's ubiquitous hot dog stands offer a good bargain in what is otherwise still a fairly expensive city, despite the plunging value of the Icelandic krona over the past year.

But that shouldn't stop you from exploring this land of geysers, geothermal pools, and water so clean it is piped straight to the city's taps without treatment.

Indeed, The New York Times recently named Iceland as one of the 44 must-see places in 2009.

Located 500 miles northwest of Scotland in the North Atlantic, this country of 310,000 is one of the friendliest places in Europe, including some wacky souls who still believe in elves and trolls. At Christmas time, for example, Icelandic children are warned that if they're naughty they will be eaten by the mountain hag named Gryla.

To get to Iceland from the United States, you have to take Icelandair, which flies year-round out of New York and Boston and seasonally from Minneapolis and Orlando, Fla. Flights from Orlando are being suspended until the beginning of October. Flights from Minneapolis start in May and end in October.

According to Johanna Gilsdorf of Iceland Travel, Iceland is the perfect destination for families, especially in the summer.

She highlighted the virtual absence of crime, which means parents don't have to keep their kids on a leash.

''If you drive 10 minutes outside of Reykjavik you are surrounded by nature, with no big streets, so that kids can always run around outside without a worry,'' she said.

Gilsdorf laments the fact that people believe Iceland to be unbearably cold, when in fact temperatures even in the dead of winter generally rise above freezing in the capital.

Our family trip to Iceland began, as most everyone's does, with a relaxing dip in the warm geothermal waters of the Blue Lagoon, the country's most popular attraction.

It's one of the most dramatic and largest open-air pools imaginable, surrounded by black volcanic rocks that conjure up the idea of a moonscape. All of us were mesmerized by the otherworldliness of the fluorescent blue water, with steam rising spookily above it.

The price is pretty good, too. Although the entrance fee is about $25 for adults, children 13 and younger are free.

The Blue Lagoon was our first stop after arriving at the smallish Keflavik Airport. Bus tours pick up guests, transport them to the lagoon about 15 minutes away, and after a few hours haul them on to Reykjavik, another 45-minute drive.

Although it's partly a tourist trap, it's an incredibly enjoyable one, with adults and children alike stopping to slather their skin in the mineral mud from wooden boxes stationed around the pool.

I'm no fan of guided bus tours, but the next day we embarked on a half-day excursion to the towering Gullfoss waterfall -- extremely impressive as it plunges 105 feet into a deep canyon -- and on to the nearby geothermally active valley of Haukadalur, where geysers spit massive jets of water high into the air every couple of minutes.

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