>>>Its iceland because it sits on the mid atlantic rift so its not part of Europe and its not part of America
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>>Not according to this:
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>>Extent of continents
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>>The narrowest meaning of continent is that of a continuous[6] area of land or mainland, with the coastline and any land boundaries forming the edge of the continent. In this sense the term continental Europe is used to refer to mainland Europe, excluding islands such as Great Britain, Ireland, and Iceland, and the term continent of Australia may refer to the mainland of Australia, excluding Tasmania and New Guinea. Similarly, the continental United States refers to the 48 contiguous United States in central North America and may include Alaska in the northwest of the continent (the two being separated by Canada), while excluding Hawaii in the middle of the Pacific Ocean.
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>>From the perspective of geology or physical geography, continent may be extended beyond the confines of continuous dry land to include the shallow, submerged adjacent area (the continental shelf)[7] and the islands on the shelf (continental islands), as they are structurally part of the continent.[8] From this perspective the edge of the continental shelf is the true edge of the continent, as shorelines vary with changes in sea level.[9] In this sense the islands of Great Britain and Ireland are part of Europe, while Australia and the island of New Guinea together form a continent (sometimes called Sahul or Australia-New Guinea).
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>>As a cultural construct, the concept of a continent may go beyond the continental shelf to include oceanic islands and continental fragments. In this way, Iceland is considered part of Europe and Madagascar part of Africa. Extrapolating the concept to its extreme, some geographers group the Australasian continental plate with other islands in the pacific into one continent called Oceania. This allows the entire land surface of the Earth to be divided into continents or quasi-continents.[10]
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>>http://en.wikipedia.org/wiki/Continent
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>"As a cultural construct" What does that mean ?

as much as I like Dragan's response :o), it means "culturally defined"