One the things that I liked about Elisabeth Moon's Deed of Paksenarrion is the various legends and folklore she eludes to in her story. Since the focus of the book on is on Paksenarrion, we only get a few details of what the stories are about.
One, Gird, got a full treatment in Surrender None and Lair's Oath. Today in her blog, the author graciously gives a overview of another legend, Torres Necklace. It pretty good and I recommend reading it for inspiration.