The best Icelandic player of all time is either Albert Guðmundsson (nicknamed the white pearl) who was one of the most technical players this world has ever seen. He played for clubs as Arsenal, SC Paris (PSG), AC Milan, SC Nice, Nancy and more and more...(My personal pick) or Ásgeir Sigurvinsson (the current national side coach) who was for many years a dominating player and chosen the best player in the Bundesliga few times. When Germany were once the world champions there coach said that Ásgeir was better than anyone in that team. There are also few more players to name Guðni Bergsson (former Bolton captain), Hermann Gunnarsson (played in the Bundesliga), Atli Eðvaldsson (Bundesliga), Eyjólfur Sverrisson (Jolly)(Hertha Berlin captain for many years) and so on...
I would to tell you a story about how famous Guðmundsson is among older people in Europe.
Few years ago I went with my parents to Paris. One night we found ourselves going into a quiet, chinese restaurant. We ate and drank and suddenly we realised that we were the only customers left (11 pm). Then suddenly, the owner, an old chinese guy comes to us, asks us about the dinner and stuff and finally we tell him that we come from Iceland. "Aha......Guðmundsson" he said and then we talked about Albert untill they closed.