When I was in high school, some friends of mine and I started writing a chain story. We would pass it around Mr. Snyder's AP Modern European History class, and each of us would write a paragraph or so before passing it along.
Some time during college, somebody typed it up. I recently pulled it off disk, where it had been compressed with the ZOO archiver and formatted in WordPerfect 4.2. I eventually uncompressed it, converted it to HTML, and fixed some typos.
Ladies and gentleman, I present The Big Schtick. Warning: it is long and weird.
I have recently tried to get some of the same authors to work on a web-based chain story. So far, it's off to a slow start (I blame Paul), but I hope it will pick up.