You could try this online shop, they have completely
searchable stock:

http://www.boksala.is

The site is in Icelandic (but fairly easy to navigate),
but there will be an English version soon.

You should send e-mail to the person in charge of
foreign sales:

petur@...

- I'm sure he can answer your queries. Be sure to
indicate the level of the books you need. It may be
a good idea to get Icelandic translations of children's
books you know well. The Hobbit? The Narnia books?
Harry Potter? Most of the important English-language
books exist in translation. Or maybe you are looking
for something more suitable for 6-8 year olds to begin
with?

Regards,
Eysteinn

--- In norse_course@yahoogroups.com, Lee Bailey <Lee.Bailey@...> wrote:
>
> Hello Everyone!
> I was wondering if anyone here knew of a good source to buy childrens
> books in Icelandic?
> Thank-you,
> Marc
> - who is trying to craw before walking
>