The Art of Fair Isle Knitting - Ann Feitelson
(This is a gorgeous and informative book. You will want to start knitting as soon
as you see it.)
Fair Isle Knitting - Sarah Don
(This is a practical and helpful little book.)
A Gathering of Lace - Meg Swanson
(This is beautiful, as are all other books by Meg Swanson.)
First Book of Modern Lace Knitting - Marianne Kinzel
(Take a look also the Second Book, too. Both have amazing designs and are clearly written.)
Scandinavian Knitting Designs - Pauline Chatterton
(This big book has a wealth of information and patterns.)
Knitting in the Nordic Tradition - Vibeke Lind
(This is great for history and patterns.)
I have left out Alice Starmore's incredible book of Fair Isle Knitting because it is out-of-print
and almost impossible to find. It also costs about $200 if you do find one.