Nýtt líf (1983)
Nýtt Líf is a film directed by Þráinn Bertelsson and released in 1983. The film is a comedy shot in the Westman Islands and stars Eggert Þorleifsson and Karl Ágúst Úlfsson, among others. The music features several musicians including the band Tappi Tíkarrass (of which Björk was a member), which contributed the songs "Sperglar" and "Kukl" (a.k.a. "Seiður").
More at Wikipedia.