"It was the last wish of the Icelandic economy that its ashes be spread over Europe"

That's from The New Yorker's "Laughing at the Volcano". Here's another:

One, perhaps told with more glee by Icelanders than by mainland Europeans, has Iceland misunderstanding what Europe was requesting: “We wanted cash,” Europe says, “not ash.”

The Daily Mirror chimes in with "Iceland volcano jokes: Top 10 gags to help you on your journey home":

While the Iceland volcano causes chaos around Europe and tempers fray, jokers have taken to the internet with a series of gags about the ash cloud which has brought the UK to a standstill....

...3. I think it’s too soon to make jokes about the Icelandic volcano…we should at least wait until the dust settles....

The funniest has to be the poor media. As I said in last week's "You say Volcano, I say Eyjafjallajökull (Volcano could mean cooling, acid rain)":

Here's the BBC's Guide to Icelandic Pronunciation. Pity the poor newsreaders.
As best as I can make out it's something like:

Ewe-gotta-be-fcking-out-'o-yer-skull

From CNN: