Google Apps work very well with .is domains. However, you must go through some steps, with Google, to verify that you manage your domain.
ISNIC gets requests about this – and they are actually intended for your DNS operator. Although ISNIC offers “Web Forwarding” as a quick method of getting your domain up and running, we’re not your Registrar, we are the .is Registry!
To follow Google’s instructions, available here – you can follow the HTML advice if you’re already running a website – but the TXT or CNAME instructions must be done with a DNS hoster.
See a list of DNS hosters/providers on the ISNIC website and note that you may find FreeDNS services from some of them (like x.is and 1984.is).
These information are informational only, and not meant as a suggestion or endorsement of any company mentioned here.