Story telling has a rich history in the SCA. Bards and troubadours were known through the middle ages and the telling of a good tale at inns, community gatherings, and even at court was appreciated. This tradition has been handed down to the SCA. Stories are told as entertainment at SCA courts and feasts, at Arts & Sciences competitions, and at bardic circles.
Aside from standard medieval stories, the SCA has an oral history of its own that has developed over the years. Exploits of SCA kings and knights and local characters, drunken revelries, embarassing moments, and disasterous events that, 10 years later, people can finally "look back and laugh" on. Songs developed about SCA life are also considered filk. It is perhaps one of the truly anachronistic features of the SCA because while the content of the stories stems from our modern experiences, the development, spread, and sometimes legendary status these stories and their characters take on is must be similiar to how stories and legends spread in the Middle Ages.
The official way to begin an SCA-themed story (in the East Kingdom and surrounding kingdoms, at least), is "No sh*t, there I was."