I did a newspost once for a game I play where I did the news articles based on the Disney fairytales, if they went horribly wrong. Trying to remember what I was playing with:
Thief arrested for kidnapping member of royal family
Woman kills competition in online beauty contest
Woman dies in sleep, discovered to be royal heir
Creole woman contracts rare disease from contact with toxic frog
Japanese Imperial State to execute woman for impersonating warrior
Soldier Dishonorably Discharged For Underage Relations With NAN child
Town rescues villager, slayed shapeshifter kidnapper
Mermaids arranging sinking of ships
Young woman sent for psychiatric help, believes she talks to mice.
Things of that nature.

You could give it the most hideous spin, or something more like Shrek where they put the twist on the whole fables as well. I remember a children's story where the hero had to rescue the dragon from the evil princess. Also, if you read the webcomic Goblins,
http://www.goblinscomic.com/, you'll see the standard good versus evil being flipped, which can make the stories that much more interesting. If you have access to the Hunter books, Urban Legends I believe did some fairy tales as an option for plots featuring vampires, shapeshifters, ghosts, etc.