Campaign World Creation Thru Fiction Writing

My post yesterday was just supposed to be a bit of fun, but it has turned into the genesis of a campaign idea.  My Quirky Comments of Fantasy NPCs has spawned quite a few ideas, and an itch to start a light hearted, sort of "gonzo" fantasy campaign.  All of my campaigns have always been on the more serious side.  Now, I don't want it to be completely silly,  sort of along the lines of the BBC show, Black Adder 1, 2, and 3, but set in a fantasy world.

To get a grasp for the world I plan on writing a series of short pieces of fiction set in the country of Viphtry, mainly the City of Viphtry.  Some involve the NPCs I created for the quirky comments, especially Dranch the Smasher, and of course plenty of new creations.  King Viphtry will play an important part, because I envision him as being a possible patron to the PCs.

It will be a world of variable magic, and odd edicts, of grand quests, and absurd battles.  Races and NPCs will be a mixed lot, from the truly bizarre, to the rather boringly mundane.  The elves probably won't really be elves, but the dwarves will definitely be dwarves.

It will definitely be old school, but maybe with a few house rules.  Also some odd charts to use during character generation.  I want a fun, quick paced game, with some occasional outlandish role playing.