I love Reykjavik, and I also love The Nordic House. Full of history and culture, it also has some amazing exhibitions.
A current exhibition is called Loops 2010, which celebrates Nordic knitting in a fun way. Here are some pieces in the exhibit:
Vík Prjónsdóttir (check out her site – amazing!)
Sarah Applebaum (U.S.; this is her Metablanket, which is also 3D)
I wish my pocketbook would let me take another trip east to Iceland for this exhibit, which ends on July 4.