Icelandic pronunciation 101

First, no silent letters except where noted! Where [h] is shown in sub-brackets the sound is very subtle and may seem a bit silly to even mention. Think of the word 'take' in english. This is (in most dialects) prounounced with an [h] right after the T sound at the beginning...just a slight delay between the T sound and the beginning of the A sound. This can be dropped without notice in English, but is more consistant in Icelandic. Therefore, if an [h] is shown in the English word, try to make sure to pronounce the silent H sound when speaking the letter in context in Icelandic, even if you would not normally make this sound in the English word.

VOWELS:
Monophthongs:
a = f[a]ther, br[a], l[a]ger ... taska, kaka
e = dr[ea]d, m[e]dicine ... drekka
é = [ye]llow, [ye]s ... ég
i|y = l[i]turature, k[i]d ... litur, þykja
í|ý = el[i]te, sw[ee]t ... líta, mýs
o = t[a]lk, l[a]w, c[augh]t ... lofa
u = (like english I in kid or literature, but with rounded lips as in an english U) ... hundur, upp
ú = thr[ew], l[o]se ... þú
ö = g[i]rl, w[o]rk ... hönd, ör

Diphthongs:
á = fl[ou]r, c[ow] (au) ... blár
ó = r[o]se, st[o]ve (ou) ... rós
æ = b[uy], d[i]ne (ai) ... bær

Combinations:
au = (start with an ö and gradually lift your tongue) ... auga, haust, þau
ei|ey = sk[a]te, esc[a]pe ... skeið

CONSONANTS:
b = s[p]are, [b]are (not aspirated as in [p[h]]ear) ... bera
d = [d]oom, s[t]one (not aspirated as in [t[h]]om)... dama
t = si[t], le[t] ... sitja
t = [t[h]alk], [t[h]]ake (word initial) ... taka

ð = mo[th]er ... maður

(This is the most common pronunciation. There are cases where the ð may be unvoiced as þ always is, but they are rare.)

ð = mo[th], [th]ought ... maðkur

(You may notice that this word would be more difficult to pronounce with a voiced 'th' sound. It is only in cases like these where the ð is left unvoiced.)

þ = [th]roat ... íþrótt
j = [y]oung ... já
j = [[h]y]es ... hjá hjarta
l = [l]ier ... læra
l = stoo[[h]l] ... stúlka, hlýr
m = [m]o[m] ... mamma
m = [[h]m] ... lampi, skammtur
r = (trilled/rolling R, much like the scottish one) ... ráðerra
r = [[h]r] ... hratt, þurrka
s = [s]alve ... sál, vísa
x = wa[x] ... lax, vaxa
f = [f]ar ... ferfaldur
f = [v]ice ... sofa (around vowels)
f = ra[p] ... Keflavík (Before l, n)
f = le[m]on ... hefnd (before nd)
f = [[h]w] ... nefnt (before nt)
h = [h]ow ... hár
h = [qu]ench ... hvað (before v)
k = [k]ing ... kalla (word initial)
k = [[h]k] ... raka (before e, i, í, y, ý, æ, ei, ey)
k = (phoenetic x) ... október (before t)
n = [n]ot ... nenna
n = te[[h]n]t ... svunta (before t)
n = lo[ng]er ... langur (before g)
n = [[h]nk] (like french 'blan[c]') ... blankur (before k)
g = li[ck] ... glápa, logn (word initial or between vowel and l, n)
g = (no english equivalent, see comment below) ... fluga, vegur, dagur, lag (after wovels and before a, u, ð, r or word final)
g = (phoenetic x) ... dragt (after vowels and before t, s)
g = Fre[y]a ... lygi, segja (between vowel and i, j)
g = (dropped) ... fljúga (between ó, á, ú and a, u)

Comment on pronunciation of G in the noted scenario: The G sound in this case comes out sounding very soft, almost like a J (as in Já, but further down in your throat, down where you would make the X sound).

Comment on pronunciation of phoenetic X: The phoenetic X sound does not exist in english, which uses a phoenetic 'xs' sound for the letter X. The standalone phoenetic 'x' is more akin to the 'ch' in Scottish 'loch' or German 'Dach'. Double consonants in Icelandic are twice as long in pronunciation as single consonants.