Interesting article on the history of the Jews in this Nordic Wonderland. I've known a few Icelanders, but most of them were simple practitioners of the ritual portions of Rastafarianism...if you get my meaning.

Iceland, the Jews, and Anti-Semitism, 1625-2004 by Vilhjálmur Örn Vilhjálmsson

Update: IsraPundit and Hatshepsut comment on this article. Also, see this later post on Iceland and Bobby Fischer.