Are there any legit Fallout Novels out there or is it just Fan fiction(which is good too but I like filling up my book case) and if there were would you guys read them?

Don't think so, but it's something I'd like to see. Bethesda picked the right guy to do the Elder Scrolls novels, so it'd be nice if they could expand and do a Fallout one, too... provided they can find the right author to pull it off.

I suppose the problem with Fallout novels is, effectively, whose story would be told?

The Fallout comic book followed Benny and some Great Khans while they headed to shoot the Courier.

Quite possibly the least interesting thing they could have chosen to write a story about.

Really, video game adaptations can go HORRIBLY wrong.

The Baldur's Gate novels were quite possibly the worst mutilation of a classic video game series ever.

(It's a testament to how badly they were done that Imoen randomly becoming gay - not that there's anything wrong with that - is the least oddball thing)

Not to mention what they did with Planescape Torment.

The dnd books were an abomination i must say i collected them and read them to see if i could find a decent one, last year the whole lot went in a rubbish skip best place for them, i cant say ive read any decent books based on games or such, a bit like transferring a book into a movie, if you dont give the author to much literary license and make them stick to the story without redesigning the world themselves novels would be great, ive enjoyed the halo novels they stuck closely to the original storyline, with the exception of reach which had to be rewritten due to the release of the game which was rewritten.

are books on games really ever good?

the original DOOM novel. that was a good VG based book

I greatly enjoyed the Halo/Mass Effect/Dragon Age novels, there are some good ones out there.