Squatters recently took over an abandoned house on Skólavörðurstígur, with the (approval) of the owner, who's looking the other way, ahem. For last Saturday's Culture Night they spiffied up the yard and announced a Schengen-Free Zone with a free-stuff bazar in the house's basement. Very cool.
p.s. Iceland eyes has been invited to take part in a joust! Really just a blog tournament, but cool anyway. Go here for more info and get yourselves ready to vote!