Mugison
I met Mugison last year during T.I.F.F. (Transilvania International Film Festiva) in a movie named Screaming Masterpiece, a documentary about Icelandic music.
His actual name is Örn Elías Guðmundsson and he usually plays a laptop and a guitar and combines Icelandic folk music with weird sounds. He has a quite unique sound and a very pleasant voice.
In addition to his 3 albums - Lonely Mountain (2003), Mugimama Is This Monkey Music? (2004) and newly released Mugiboogie (2007) he also made 3 soundtracks, for Niceland (2004), Little Trip (2005) and Mýrin (2006).
Along with Björk and Sigur Rós, he made me love Icelandic music.
You can try some of his stuff here