Saturday at Airwaves, and as always half of the crowd disappeared off to the blue lagoon for a bit of pampering and relaxation at the hangover party. I haven't been for the last few years but I couldn't resist posting this fabulous photo which totally captures the spirit of the party taken there yesterday by Johan Eckerström. More of his excellent photographs can be found here.

Once I had employed (again) the world's best hangover cure (Icelandic hot sulphur water shower, windows wide open, skyr, expresso, expresso) I ventured out into the steady rain to search for that optimum balance of (a) seeing lots of off-venue shows and (b) keeping dry. Reykjavik! played an 'acoustic' show in the Lost Horse Gallery, which is a room with space for about 20 people in it. Now, however, it had around 50 in it and minds were concentrated on avoiding swinging guitar necks and splintering wood as Boas got 'acquainted' with the chairs. At Skifan, I caught some of Lara's set of pleasingly, head-shaking songs. But the store really filled up soon afterward for yet another show by this year's hardest working band, Mammut. Word clearly had spread around town that this is a young band well worth checking out, and again they delivered a high energy, hook heavy set and no doubt sold a few records too as they headed out to prepare for their next show later in the evening.

I started the evening (my last at Iceland Airwaves 2009) with my annual trip to see Jeff Who? play live. Every year (except last year when they suffered as a result of being in the festival's worst venue, but best hang-out, Hresso) I wonder why they aren't more successful. Their songs are obscenely catchy; guitar riffs and synth chords everywhere, and an audience full of huge grins. They look good too, as I overheard one possibly jealous guy say, "They just found the best looking man in Iceland and put him at the front of a band" – more to them than that, the guy can sing too, I'll leave his looks for others to debate! The show was great, and from my point of view it was nice to hear some songs from their superior first album like "Golden Age" and "Death Before Disco", before recent hit, "She's Got The Touch" brought Nasa to an early evening crescendo.

Out again into the chilliest evening of the festival for some serious venue, and genre, hopping as I attempted to see three excellent but different acts within an hour. First to Batteriid for ghostigital. The venue was running late, bad news, and a caught the very end of BB & Blake's set which didn't seem to have engaged too many, with the exceptional of two particularly keen girls swaying along at the barriers. Ghostigital set up very quickly, considering the amount of electronics which seem to go into their sound. This band is genius, Curver is a superb electronic musician pumping out massive beats and distorting the vocals of the King of Icelandic music, Einar Orn, as he barks about whatever he likes – variously tonight his subjects included trousers and hairy scary things that are "behind you". Einar Orn has the best crazed stare in all of music, and probably beyond. I left before the end of their set, reluctantly, as I knew by know at Idno Olafur Arnalds would be on stage. Olafur returned to Iceland especially for this show having been performing his score for a ballet in London, and I wish he had ben allocated a bigger venue. This guy is becoming an international music star and Idno was very cramped and very very hot – I saw people arrive but turn away immediately when they saw the crush, and felt the wall of humidity (or less politely, sweat). Sometimes, however, all this can be forgiven – the show was incredible. the audience stood in utter silence watching Olafur, in jacket and bow-tie, playing keyboard and laptop and his four piece string quarter deliver half an hour or so of the most stunning modern, electronic classical music. This style is so out of my normal taste, or even interest, but I find his songs irresistible. His "Found Songs" project is one of my most listened to pieces of music of the last 12 months and it's highlight "Ljosid" was also the highlight of this performance. The set ended abruptly, robbing us of one final song, when the technology failed and couldn't be recovered in time to keep the venue on schedule. there was one idiot vocalising frustration, but the rest of the audience drowned him out quickly with rapturous and deserved applause.

Into the streets again, delighted to be cooled down, and ready for a swift move up Laugavegur and into Grand Rokk for Jan Mayen. But hang on, what the hell is that noise – too loud surely to be coming from inside a venue. A passing truck held the answer, Dr Spock's (not that) secret gig was taking place, everywhere on the back of a moving truck! This was truly a piece of theatre; as always there were a few enormous rubber gloves, and the flamboyance we all love from this incredible live rock band as they carried on performing as the side of the truck opened and closed mechanically. They were followed by a lot of spectators, a mobile merchandise store and a long queue of surprisingly patient traffic. Delayed somewhat by the spectacle I arrived for the last few songs of Jan Mayen's only appearance at this year's Airwaves, but it told me all I needed to know. They remain one of Iceland's finest guitar bands, possessing some great, catchy indie tunes which would be at home on any radio station in any country. Let's hope for some new material soon.

Undecided where to head next, I ended up in the Art Museum (no queue!)  and was very glad to catch the end of Oh Land's main set having seen them at the hostel previously, and my timing was perfect as she closed with one my favourite songs of the year, "frostbite". The Cocknbullkid from London was on next, but this is not my cup of tea I'm afraid, so I left again to ensure my spot in Nasa for Reykjavik's finest young bands, Retro Stefson and FM Belfast. Both sets had a very similar vibe to last year, there's an excitement around this pair of bands that they are making sounds which could lead to success outside of the island. They were rapturously received as the home-grown young stars they are. Both sounded as fresh as they did last year, and performance wise, and visually, they had improved as bands. Retro Stefson delivered a familiar set of songs in at least four different languages and then FM Belfast brought my night to a close with fabulous dance music, bringing the house down, as in 2008, with their cover version of Rage Against The Machine's "Killing In The Name Of". A fitting end to my festival, it always seems to end in Nasa with something incredibly and deliriously 'dancy'! Often that has been GusGus who I will be very sad to miss this year, particularly as they have just delivered what just might be the best album of their long career. Don't miss it folks, and enjoy the party. Over and out…

If you were there, I'd love you to leave a comment below. What were the highlights? What sucked? What did I miss?