Auroracoin distribution is especially well structured to encourage spending/commerce rather than speculation.  Making that happen smoothly though is going to require a suite of tools for merchants who have never used, or even heard of, cryptocurrency before.

What is the best way to make this happen?

1. Pay a firm like CoinKite 25btc to adapt their tools to AUR?
2. Lobby coinpayments.net to support AUR?
3. Setup bounties on this forum encouraging developers to build tools from scratch?
4. Some other option?

I think 2 or 3 are better than the first one.

25BTC are 13k USD  or 5000 AUR; you can make a VERY nice bounty at this price

Good idea.  I've started threads on this here http://forum.auroracoin.org/viewtopic.php?f=9&t=195 and here https://bitcointalk.org/index.php?topic=498236.msg5481392#msg5481392

There are very soon thousands of Icelanders who want to spend their coins ... on something.
And the ecosystem of coin usage is still not very dense - of course, how could it be already.

So what about a system (similiar to kickstarter but different) - in which they can support whatever THEY want to see created for their currency.

A few prelimary thoughts about such a system are in this thread here:
https://bitcointalk.org/index.php?topic=406049 "CROWDBOUNTY"

Discuss it there, discuss it here, or in your forum - but please keep me updated by PM if this discussion lifts off (because I am in so many places in this forum, I can not promise to come back regularly).  I am sure the idea is beautiful, and will work if done right.  And perhaps it will be born in the auracoin environment?

And imagine the second next step: The crowdbounty idea "breaks out of the internet" :-) and Icelanders suddenly start to invent bounties for real life problems, collective incentives to have the world around them improved.

Good morning dawn of a new time