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Taugadeildin was founded in 1980 by Óskar Þórisson and Árni Daníel Júlíusson. Both had started out in the first punk bands of Iceland, Fræbbblarnir and Snillingarnir. Óskar became the singer and Árni Daníel the bass player. Together they wrote a few songs, bought a drum machine and recruited Arnór Snorrason on guitar.
With this line-up the band played a few concerts, but in the winter of 1980/81 Þorsteinn Hallgrímsson was recruited as keyboard player. Arnór had to quit the band as he was too busy playing with Fræbbblarnir and Óðinn Guðbrandsson replaced him. Last to join the band were Kormákur Geirharðsson on drums and Egill Lárusson with additional vocals. This line-up of Taugadeildin played many concerts in the winter and spring of 1981, with Utangarðsmenn at Hótel Borg, with Any Trouble and Baraflokkurinn in Laugardalshöll, with Purrkur Pillnikk many times and finally at "Annað hljóð í strokkinn", a big new wave concert in Laugardalshöll in June 1981.
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