Note: More information can be found at the museum's website. The link should take you to the English version of the site, but unfortunately it doesn't look like the papers have been translated. The site does have a lot of videos such as the one above, however, so it's worth a look if you're interested in this relatively obscure angle on Icelandic history.
One of the more bizarre displays at the museum is a pair of pants made from human skin called the Necropants. "According to legend, sorcerers would strike a deal where one of them would agree to be made into a pair of trousers after they die, and the necropants would then be used for magic." Source: UPI (2013). A list with depictions of the magical signs and staves used by the Icelanders can be found here.