That looks like toadflax. Here's a couple of close-ups to help ID it. A lot of early butterflies feed on toadflax. I just mow mine with the rest of the lawn.

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Tammy identified this butterfly as an male falcate orangetip.
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I also wanted to add that it won't outcompete your grass.

it could be the wild campanula- aka harebell, too. or, possibly bluets. it would really help to see a closeup shot.

Looks like its taking over bare dirt! Turf grass is a tough group of plants. Give them the right conditions and they will outcompete winter weeds.

A trivial fact about Falcate Orangetips: a great small butterfly and one of the first species you can see in the year, often in late winter. You can tell the sexes because only the males have the orange tips on the front wings. They only fly around for about 10 days and then their season is over, so if you missed them you have to wait til next year. I find them near moist areas flying low to the ground in the first batch of warm days we have each year. It takes about two weeks of warmth to get them up and flying.

Tamelask, I'll try to get a better shot today, the conditions are a little better for photography. Maybe I can get a clearer pic for you. Alicia, thanks for your input, I do have a lot of butterflies here. I see them contstantly. John, LOL not bare dirt. The picture is taken where there is a backdrop of two areas I didn't seed on purpose for a bed and patio area.The area is at the edge of the lawn. I put in Bermuda which is only starting to come out of dormancy now. Considering the conditions this poor lawn has endured since it was planted, I'm not too disapointed in it. I completed my house Feb. 07. put in the seed in 4-07 and had to fight with drought and water restrictions all year. I didn't put any winter Rye in because of the water it needs and because of the new Bermuda. From my research, I understand it's not great to put Winter Rye in on a brand new Bermuda lawn. I'll upload a series of pics from last year and the planting/growing process if you wish to see them. I know the grass will eventually out compete, however I want to make sure I don't have something starting that is exceptionally tough. Right now this stuff is everywhere!! This is one of the reasons I chose Bermuda for it's ablity to "choke out" weeds. :-)

Nannerbelle, don't worry, nothing is tougher than bermudagrass. It will grow over the top of anything that's not big enough to shade it out, lol. The lawn of our old house site was originally some sort of shade mix and bermuda just seeded in and took it over, which was fine with me since our lawn wasn't actually shady anyway. Hubby wanted to try heat-resistant Kentucky bluegrass with the new house site and while I really hopes the bluegrass makes it, I image the lawn will be bermudagrass in the end.