From Sorvagur on the isle of Vágar, the ferry takes you to Mykines to walk and look at puffins. The Vestmanna Cliffs, also reachable by boat, are a good place to hike and see Arctic birds. Walks you can take from Tórshavn include the village of Kirkjubour. Other good walking bases are Viðareiði, reachable by ferry, and Oyndarsfjørður, Funningsfjørður, and Gjógv.
Follow the links, and you will see pictures. The map and some of my ideas are from the Adventure Center of Emeryville, California, but it is not necessary to take an Adventure Tour. There are six youth hostels in the Faroes. The NYT has been there, and their article includes a slide show and a marvelous video on, of all things, fall ram herding. In the second thirty seconds of the video, you hear a mystical song.
Axé.
