::sigghhhh:: actually, that's kind of inaccurate. Fan fiction is fiction based off a certain show, movie, book, novel, ect... as in, the characters belong to someone else (unless you add in an outside character that is one of your own), and the idea of the show is copy-right. the story line can be someone's completely original idea but they place characters from a show into it. i am an author by nature, it's something i have always done. i actually am working on a book to be published by a publishing group out of England in a a few years (or when i can get the time to finish it). however, i have fallen into the fan fiction trap and now i just write that stuff. it's my own plot but i use the InuYasha characters, bending their personalities ever so slightly to fit my scenario.
there is all different types of fan fiction. some based of canon ideas (that follow the show that could be substituted for an episode), AU (alternate universe), crossovers (brining other characters from other shows into another, the biggest that i've seen has been the InuYasha crew meeting up with the yu yu hakusho team) stuff like that.
some good sites to check out for fan fiction are:
http://www.mediaminer.org/fanfic/src.php/a/461
http://www.fanfiction.net
(this one is a little hard to navigate, i suggest mediaminer)
http://www.animespiral.com (again, a little hard to navigate)
there are so many more fiction sites. i know tons. i'll also throw in a few suggested fics. please regard ratings, they are there for reasons. some people will write in stuff that is...well...explicit...so just check the ratings and read appropriately.
Chronicles, by Sueric
http://www.mediaminer.org/fanfic/view_st.php/76882
Purity, by Sueric
http://www.mediaminer.org/fanfic/view_st.php/67578
The Lucky ones, by Terri Botta
http://www.mediaminer.org/fanfic/view_st.php/54993
i got a ton more but i'll stop at these. let me know what you guys find, if you find good ones. there are tons of really well written stories, just search them out!!