Stayed 1 night. In the hotelrooms in the concrete building up the hill. The main house (the swiss style concrete house with grass roof) is mainly a hostel and was full of young students at their "start-of-study get together tour".
Our room in the new house are fine, Nordic-spartan, and with a problematic slope of the floor in the bathroom in our room.

All the place has of course free internet, unfortunately wired in the new rooms, so smartphone didn't connect cheaply up there.
Staff is helpful,

Restaurant ONLY serves a single, set dish - OK but "daily meal"-type - and not very cheap. You would have had to drive very long to reach other options.
The micro village/town is pretty - but is being expanded with more (summer?) houses. Walks in the surounding a giving but streneous - you start with a steep climb on a nearly non-existing path. Do not try after rain.

Book the best type of rooms - the price differences are (too) small.
The correct spelling of the place is (hope it is saved in the processing): Gjáargarður

Breakfast was OK, but to the simple side of the usual Scandinavian buffet. Funny there was neither any cheeses nor the black rye bread.

We stayed here for two nights and had the luck of staying in one of the new rooms (a small extension just up the hill from the main hotel). This room was lovely and spacious, with underfloor heating and ensuite bathroom. It would have had internet though unfortunately it was not working in our room for when we stayed. Beds very comfortable, and parking freely available. The hotel itself does offer you a hot meal rather than a menu for dinner. It's just whatever the chef has cooked that you can have, so if you might want to check in advance what they are cooking. We had fish curry and roast beef, both very tasty and desserts of apple pie were served as well. There is free wifi in the hotel. Breakfast consists of a choice of three breads, cheese, hams and boiled eggs all very fresh. Packed lunch is available if you want (might be a good idea considering the lack of places to have lunch nearby). Overall very enjoyable, and the owner made sure we were well looked after would stay again.

I've stayed here three times over the last five years, it's a favourite. I usually travel solo, and I'm always on a budget, and the Faroes is EXPENSIVE ! You can get to Gjaargardur in the miniscule and beautifully picturesque village of Gjojv ( about twelve families in total) in an hour by car or by public bus if you're a bit canny with reading timetables. There's two buses each day in the low season, three in the high season. You need to phone the bus company to let them know to pick you up from Oyrarbakki, where you get off/meet the bus 400 Torshavn-Klaksvik. The phone number is on the Timetable, available from the Bus counter at the ferry/bus terminal in Torshavn . Wierdly, Tourist Info in Torshavn doesn't have these. The bus staff speak and understand English. You'll need to use a public phone OR buy a Faroese sim card ( 100 krone, with included calls) from the Phone company shop up the street from Tourist Info as the Faroe phone company ( wierdly, but you get used to wierd in the Faroes) has no roaming correspondence with any other phone company/server in the world.
So, you arrive at Gjojv after an hour and a bit bus ride through some of the most stunning sceney I've seen anywhere in the world, and the bus meanders down a long single road through the glacial valley and stops at Gjaargardur. You're there. If you hired a car and did it the fast way- same sceney but you'll have had your eyes on the road so you didn't hit the sheep that tend to wander over it and you may have missed the view.
There are nice new rooms completed last year (2009) with ensuite, standard hotel prices, fabulous view. If you're not scared of shared bathrooms, you can do it cheaply by booking a "Viking Bed", which is like a large cupboard set under the eaves of the main house with a window to the sky through the grass roof- cozy, and quite private once you close your cupboard door. It's big enough for two without bags -there is space for bags in draws just outside your cupboard. If you want security when you go hiking, bring a small padlock for your cupboard door, but this is hardly necessary in this part of the world. There is a power point in the cupboard just above your head for charging phones, computers.
There is no share use kitchen, but this didn't stop a Czech family travellling cheap from boiling up their rice in the bathroom. Breakfast is included with your room and consists of the usual Scando fare (and homemade Rhubarb jam) except the meat is not your normal cheap ham and salami, but three kinds of Faroese sausage made from lamb- tasty!
They do Smorbrod for lunch, but dinner is the big event- one main dish (no menu) which might be a fish curry, pork , chicken or beef dish, and if you're there on the right night, New Zealand lamb ( it's way cheaper in Faroe than the local stuff) prepared and roasted to a Faroese recipe. Rice or potatoes and salad on the side and a home made dessert plus coffee.Beer etc available. I can't remember the price, but it's quite reasonable by local standards. It's a friendly and flexible kind of place, and I would not be the least surprised if they agreed to make a vegetarian dish if you asked in advance. The manager, Eric, smart, sympathetic and worldly, has had the place for five years and plans to stay for a few more.
Now, more about Gjojv. There's a very cute church ( Eric has a key), one little cafe apart from Gjaargardur that opens on Summer afternoons and serves excellent fish soup, a delightful stream through the middle of the village with quacking ducks and ( on a sunny day ) a shallow pond for children to frolic in, and plenty of hills to climb and birds to watch if that's your thing. If you have good legs, about 90 minutes walk back up the road ( very little traffic) to the top of the valley brings you to the cairn trail down into the sweet village of Funningur, and you can ride back to Gjojv on the 3.30 bus ( if you phone the bus company two hours ahead). On the other hand, you may, like me, just enjoy the quiet and the music of the stream while reading a book or inspecting the back of your eyelids.
Just one more thing, Gjaargardur has wireless free internet, it belongs to the civilised world.

Firstly, this is not a b&b. It's a hotel, cafe, bar, etc... with all the things you would expect of such a place. It also houses virtually all the facilities available in the tiny village of Gjogv. Also we didn't actually stay, used the facilities and was made to feel so welcome by the manager that if I'd have known about this place beforehand I'd have arranged a night's stay.

You cannot miss the building. It's the large red building on the opposite side of the river built with the traditional faroese roofing - grass growing.