Hi Dropshot
Driving to most attraction would take at least 1-2 hrs. I had tried driving in the direction of Selfoss (East) and after about 1-1/2 hrs out of the city lights, stopped at a field to capture the NL. Believe me, its creepy as you are the only one there (Just me and my wife). After about 15mins, I decided to turn back. If you are taking three or four guys with you, then perhaps its okay. The reason why I recommended Seltjarnarnes is because its just 15 mins drive from the city, and just about 70 meters down the road, there is some chalets. Seltjarnarnes is by the coast and features a lighthouse. On a clear night, lots of locals will proceed there to capture the Northern Lights as would self drive tourist. So lots of activities and company. Its pitch dark with only the headlights from the cars moving in and out. If you dare to venture, you could walk to the coast to be away from the interruptions. Your best guide for the cloud conditions would be the 'Aurora forecast - Icelandic Meteorological Office' there you could chart whether its going to be clear over Reykjavik, extremely accurate and heavily relied on . There is also an apps for Iphone to check the activity levels. If you pm me your number, I could share with you more on the phone. Hope this helps.