Mum (Icelandic band) have recorded these albums.....
'Yesterday Was Dramatic, Today Is OK'
'Finally We Are No One' (the 'green' album, this one is just gorgeous)
'Summer Makes Good' (a little darker than the previous one...)
'Go Go Smear The Poison Ivy'
http://www.cduniverse.com/search/xx/music/artist/Mum/a/Mum.htm
the line-up has changed a little over the years, but the original guys are still at the helm. I think the main guy started off writing music for computer games, and you can hear some of that in the first album, 'Yesterday Was Dramatic...'. They combine low-tech electronica with real-world sounds like cello, accordian, toy pianos, saw (yup, saw played with a violin or cello bow), samples, guitars, etc, and elf-like vocals. Some of the song titles alone are worth the price of admission.