Rac Ter

"Racter", short for "raconteur", is an Eliza-like program designed to tell stories. See http://www.mobygames.com/game/sheet/gameId=563.

For a skeptical view of Racter's famous work, The Policeman's Beard is Half Constructed, see http://www.robotwisdom.com/ai/racterfaq.html.

I read about that, too. Seems it was never ready for prime time. It could substitute words in a poetic (read random) way from a thesaurus in sentence templates, but it never really "understood" what it was talking about. The funniest parts were the random interjections.