as to "procedural" stories, this link, i think on blues the other day...has stories that generate themselves, to make games that "will be less like scenes from a film and more like a reactive and interactive world that players can explore almost endlessly. "
the prototype uses the unreal engine. here's the link:
http://news.bbc.co.uk/2/hi/technology/2708995.stmThis reminded me somewhat of the idea presented in the book "Ender's Game"..and others I'm sure.