  We present far-ultraviolet spectroscopy of the emission/reflection nebula IC
405 obtained by a rocket-borne long-slit spectrograph and the Far Ultraviolet
Spectroscopic Explorer. Both data sets show a rise in the ratio of the nebular
surface brightness to stellar flux (S/F_*) of approximately two orders of
magnitude towards the blue end of the far-UV bandpass. Scattering models using
simple dust geometries fail to reproduce the observed S/F_* for realistic grain
properties. The high spectral resolution of the FUSE data reveals a rich
fluorescent molecular hydrogen spectrum ~1000" north of the star that is
clearly distinguished from the steady blue continuum. The S/F_* remains roughly
constant at all nebular pointings, showing that fluorescent molecular hydrogen
is not the dominant cause for the blue rise. We discuss three possible
mechanisms for the ``Blue Dust'': differential extinction of the dominant star
(HD 34078), unusual dust grain properties, and emission from nebular dust. We
conclude that uncertainties in the nebular geometry and the degree of dust
clumping are most likely responsible for the blue rise. As an interesting
consequence of this result, we consider how IC 405 would appear in a spatially
unresolved observation. If IC 405 was observed with a spatial resolution of
less than 0.4 pc, for example, an observer would infer a far-UV flux that was
2.5 times the true value, giving the appearance of a stellar continuum that was
less extinguished than radiation from the surrounding nebula, an effect that is
reminiscent of the observed ultraviolet properties of starburst galaxies.
