Tales of the Arabian Nights, originally published by West End Games in 1985, has recently been published in a new edition by Z-Man Games. It is, in its own way, an important game.
It's a "paragraph-system boardgame," a genre that had a brief spate of popularity in the early 80s, and while it is not the first such game (Barbarian Prince, among others, predates it) it is perhaps the most polished and interesting game of its type.
The basic concept behind the paragraph-system boardgame is that at times while playing an overarching boardgame, a player is asked to read a paragraph from an accompanying book, then make a decision and possibly apply some game systems to branch to another paragraph, and so on. Once this little mini-adventure is complete, play returns to the boardgame itself. Thus, while a paragraph-system boardgame is related from a systems perspective to choose-your-own-ending books and solo RPG adventures, it provides greater variety of encounter, and greater potential for replay, because story elements are not always encountered in the same linear fashion, and because the boardgame elements may themselves provide strategic challenges exterior to the stories.
You can think of this style of game, in fact, as a precursor to quest-driven MMOs, which similarly have small embedded narratives within a larger game structure.
The innovative aspects of Tales of the Arabian Nights are twofold; first, the mini-adventures are purposefully written so that the same set of events and possibilities can be reused with a wide variety of different characters, situations, and protagonists (e.g., different variables can be plugged into the story arc), providing far greater variety of encounter than most similar games; and secondly, this is a competitive, multiplayer game rather than a single-player one (which most games of this and related styles are).
In other words, Tales is an attempt to solve the difficult problem of reconciling the incompatible demands of narrative and the game in an original and unique way, and as such, deserves study by anyone interested in the problem of interactive narrative.
Full disclosure: I have collaborated with Eric Goldberg on many projects, and Z-Man Games will be publishing MegaCorps, an upcoming game of my design.