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Currently I'm using the Univercity of Iceland's site. It's good, but sometimes its hard to understand because nothing is in english. So I thought perhaps it came with a text book, so if anybody knows what the textbook is called, that would be great. Or if they know a different icelandic learning book that is good. Or a site or anything.
There is no textbook as far as I know. When I do the lessons on that site, I always use wiktionary and this Icelandic-English dictionary (http://digicoll.library.wisc.edu/cgi-bin/IcelOnline/IcelOnline.TEId-idx?id=IcelOnline.IEOrd) to look up unfamiliar vocabulary. They left English out for a reason; you're meant to draw conclusions about the vocabulary and sentence structures from the context. As long as you have a dictionary handy for words that completely stump you, the lessons shouldn't be problematic.
I also use an Icelandic workbook called Hitt og Þetta. The PDF version is on the Námsgagnastofnun website (http://nams.is/) for free. Just type the title into the search bar that reads "leitarorð."
Not sure about a textbook specific to the University of Iceland stuff (I haven't even found their Icelandic material yet...) but here's a good resource for Icelandic:
Especially the video lessons are really great. And here are a few books you can download for free:
Tungumálatorg seems to be a great website, so many resources! Some of them are aimed at children, but there's also stuff for any level and resources specific for foreigners. I haven't quite deciphered much of it yet, but I'm starting with the video lessons.