I can't give a lot of advice. I flew to the Faroe Islands from Iceland - I called it my vacation from my vacation. There aren't a lot of places to stay. I stayed in the capital Torshavn at Hotel Hafnia. It was nicely located a couple of blocks near the port and the staff was helpful - they even directed me to the free internet access at the library instead of using the hotel's own expensive PC.

I took a birding tour from Vestmanna (where a high school penpal lived and still does, tho unfortunately he wasn't home when I was there) - I'm not really interested in birds, but it was a nice way to tour around the islands.

A side note: of the 22 countries I visited, this is the only one where I didn't see a McDonalds!

Marguerite in Chicagoland