OK people. I just got off the phone with an Icelandair rep. It took awhile but she finally confirmed that tickets are RT and available for all flights within all the fifty states.
However she said this is a new product and that she knows a website in the US posted the deal and that she is waiting for instructions.
She told me it would take ten days for the points to post but I purchased them and it posted instantly.
I'm just trying to decide if I should buy another 60,000.
If you are on the sidelines I'd say go for it. I don't see how they can change the terms after multiple confirmations without at least having to refund us.