Iceland seems to be doing a lot of things right lately: declaring bankruptcy instead of bailing out the banks, ensuring Internet freedom, allowing feedback from their own citizens on their laws/Constitution, and now moving the public administrations to open source.
I'm Icelandic, and although I love my country... I am wary of the spin put on some of these things. A lot of the events that followed the crash were pure luck or even incompetence - I suspect the government would have liked to prop up the banks, but just failed to do so. :-)
But these moves towards Free Software are on the other hand genuine, as are a lot of the grass-roots efforts (I know many of the people involved personally and have helped out with a couple of related projects).
These changes are also very fragile still, it's early days and one wonders what would happen if Microsoft decided this was P.R. problem and decided to throw money at trying to make "the problem" go away.
If only more countries took them as a role model.