I'm working on http://wtales.com/. Think collaboratively authored choose your own adventure books. So far wtales is just a side project and is just getting off the ground. To kick things off, I am running a kick start program where people can earn amazon gift cards for posting stories (more info on that at http://wtales.com/kick-start-landing/).
Hey Sean, I've been musing about automatic story generation / dynamic choose-your-own-adventure games recently. I'd love to chat with you about this stuff if you're interested. You can contact me from my webpage from my profile if you'd like to chat.