A friend of mine back from Copenhagen, Kári, is currently working on his masters project – redesigning Icelandic folk tales and legends. Pretty neat stuff from what I've seen so far. Check out the progress on Lokaverkefnið or the Ponyfarm. By the way, the guy also has pretty cool illustration blog with a friend from up north called Krass og Krot. Go check it out! And props to the Danish capital, hope you don't hate me for showing your stuff here :)