She lived in Gainesville, Florida, U.S., from age 4 to age 11. She currently lives in Hafnarfjörður, near Reykjavík, Iceland. Her Flickr images led to her creating and appearing in a Toyota advertising campaign.
Her posted images at Flickr were copyrighted, but then sold by a third party without her consent. "Only Dreemin" sold 60 prints, of seven of her photos, for more than £2,500, without her consent. She protested by putting up a photo at Flickr that named "Only Dreemin" and had text telling of the illegal sale, but Flickr removed it saying users cannot "harass, abuse, impersonate, or intimidate others".
Since then, the thread was put back online by Flickr and Guðleifsdóttir received an official apology