http://news.bbc.co.uk/2/hi/europe/8578576.stmQuote:
Volcano eruption near the Eyjafjallajoekull (Eyjafjallajökull) glacier, Iceland
The eruption lit up the night sky just after midnight on Sunday
Several hundred people have been evacuated from their homes, as a volcano erupted in southern Iceland.
The volcano near the Eyjafjallajoekull glacier began to erupt shortly after midnight, leading to road closures in the area.
No one was in immediate danger, but 500 people were being moved from the area, a civil protection officer said.
It is almost 200 years since a volcano near Eyjafjallajoekull, 120km (75 miles) east of Reykjavik, last erupted.
"We estimate that no one is in danger in the area but we have started an evacuation plan and between 500 and 600 people are being evacuated," Sigurgeir Gudmundsson of the Icelandic civil protections department told the Agence France-Presse news agency.
Map
There are fears that the volcano could cause flooding, as it causes ice to melt on the glacier above it.
"Ash has already begun to fall in Fljotshlid and people in the surrounding area have reported seeing bright lights emanating from the glacier," RUV public radio said on its website.
"It was a bit scary, but still amazing to see," Katrin Moller Eiriksdottir, who lives in Fljotshlid, told the BBC News website.
"The ash had started falling and we couldn't leave the car. They have now closed the road but we'll see what happens in the morning."
Three Icelandair flights, bound for Reykjavik from the United States, have been ordered to return to Boston, RUV radio reported, and much of Icelandic air space is a no-fly zone.
The last volcanic eruption in the area occurred in 1821.
This isn´t very relevant or interesting unless you know the history of volcanic eruption in Iceland. This volcano is thought to be linked to another that is east of it that goes by the name of Katla. and there are documents and studies that show the link between them. Eyjafjallajökull is the small start button for Katla.
Last eruption in Katla:

the mountain under the Icecap (the crater is 10km wide):

info about Katla:
http://en.wikipedia.org/wiki/KatlaWhy is this relevant? When Katla erupts it spews forth enormous amounts of ash. This volcano system is thought to be the reason for cooling in Europe that let to crop failure and then the french revolution. more importantly, jet engines cannot work with there is ash in the atmosphere. the engines just turn off automatically. If there is a big eruption in Katla, flight over north Atlantic and possibly parts of (depends on the weather) Europe or north America could be grounded. for weeks or even months if it is a big eruption.