Strong wind and dry weather are an ideal combination for ash/dust storms.
Windspeed at Kvísker (figure below) and Kirkjubæjarklaustur well over 15 m/s and even stronger gusts.
Data from the IMO web site.
Satellite image take at 14:20 on 10 September (MODIS/NASA Rapidfire via IMO). Clearly visible broad plume of ash/dust reaching to the south-east.
Satellite image taken at 15:05 on 11 September 2012 (MODIS/NASA Rapidfire via IMO).
Today there are visible dust storms from north of Dyngjujökull (Vatnajökull) and Ingólfshöfði, south of Vatnjökull.
Wind speed at Sandbúðum, east of Hofsjökull, has been around 10 m/s – especially for gusts.
Below are MODIS satellite images from NASA/IMO since:
12:40
14:35
New data, combining observations from 3 different satellites, show that almost the whole surface of the Greenland glaciers was melting on 12 July 2012. It is not clear still whether most of this will refreeze, or contribute to this seasons annual melting.
The image pair below shows the situation on 8 and 12 July 2012. The 8th of July case is typical for the last few years, with nearly half of the surface experiencing some melt, but the 12th of July is extraordinary. But, like mentioned above, the net effect of this remains to be seen. This might be a short lived event, or not …
Credit: Nicolo E. DiGirolamo, SSAI/NASA GSFC, and Jesse Allen, NASA Earth Observatory
The wildfire yesterday at Snæfellsnes is seen on a satellite image (MODIS image from NASA) at 21:15 on 9 July 2012. The location is to the east on the southern part of the peninsula, see map below.
The weather in Stykkishólmur on Monday at 21:00 (from IMO vedur.is).
Wind: 
Which fits nicely with this being the smoke from the wildfire which is seen in the image above.
Here is the location of Rauðkollsstaðir the closest farm to the wildfire (map from LMI.is) which also fits nicely with this being the smoke from the wildfire
Here are finally couple of news (in Icelandic, but some with pictures) about the wildfire:
