Spooky, eh? The first time Valentina and I saw this critter, or one jsut like him (her?) was at the Skógar Folk Museum in south Iceland. We were told by a kind old gentleman who worked there that he's seen plenty of kids burst into tears when they grasped what was going on with this lamb. Others, like my girl, just showed intense curiosity and a bit of wonder at the weirdness of the world.
This lambkins is displayed in the window of a nice new wool store (don't know the name!) on Hafnarstræti, just next door to the Dubliners pub, downtown Reykjavik, for all to see and marvel at.
While cruising and perusing the web I found a great and very up-to-date listing of Reykjavik stores on the Reykjavik.com website. The English language monthly Grapevine also has a good listing of shops here, and is well worth reading overall to get a good feel for what's really going on here in the political and cultural scene. Check it out.