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This book is fantastic! I was learning Icelandic to get in touch with my cultural roots, and I'd heard about this book and decided to try it out. There are quite a few people who complain about the book, but if you put in patience and time which is neccessary to learn any language then the results will be great. The book does a great job of introducing grammar and vocabulary without too much confusion.
This is one of the best books for beginners out there. It does not hammer you from the get go with complicated noun declensions, verb conjugations, and other various forms of inflection, but focuses on gradually bringing you up to speed by introducing you first to key words and phrases, and explaining a bit of the grammar along the way.
I would strongly recommend getting the audio along with it, as Icelandic has a number of sounds that are difficult to pronounce, and hearing those sounds makes it easier to practice. The dialogues are great. From the get go, you are hearing Icelandic speakers at a seemingly natural rhythm, which is rather fast.
I would recommend "Colloquial Icelandic" for anyone who thinks they might have an interest in Icelandic.