We are just very fine and don´t in fact notice it much here, although it is getting a little weary for the people that live near to it, having often zero visibility out of their houses.
Now they are predicting a possible ashfall in Reykjavík on thursday, which incidentally is our oldest holiday, then we celebrate the first day of summer according to the old viking age calender.
Here are a few more pictures:
http://mbl.is/mm/frettir/myndasyrpa.html?cat_id=4;album=1051;img=28533
But as they also are expecting rain (go figure on the first day of summer), there are doubts that it will reach us here in Reykjavík. The rain has also resulted in the ash becoming a thick sludge everywhere in the most affected areas. But interestingly, people in western part of Denmark, found their cars covered with a thin layer of dust recently.
I recomend the video called "Ash causing more than travel voes" from cnn, it shows very well the local impact:
http://edition.cnn.com/video/