Best Fiction: Morrowind by Alexander. This story has slipped into the recesses of the forum, but I absolutely loved it. Alexander slowly drew me into his world, and since it was about a group that I cared little for in the game (the Telvanni), the fact that by the end I was desperate to know what would happen next is a good indicator of how intriguing it was. His plot was the kind of murder mystery I adore, and his immersion into the alien world of Morrowind was very effective.
Unfortunately I don't think I've read enough of the available fiction, which is a crime, because there are some incredibly talented writers around. There are other pieces I loved - Challenges by bhen and The Last Slave by Radont, who I believe is writing his own original novel now, being among the most enjoyable.
Best Character in Fiction: For me, this would have to be FC4s Siena from Manic Dementia. I feel that throughout the writing of this story, Siena's character has grown in leaps and bounds as FC4 has discovered her along with the rest of us. What I love so much about her is the fact that she is a strong, relatable, realistic female lead - something annoyingly scarce in the fantasy genre as a whole. The gritty realism in FC4's writing - fighting and doing magic is tiring, adventures are uncomfortable, madness is terrifying - translates beautifully into Siena's experiences, and as a result, the readers'. The fact that she is strong despite the realistic odds stacked against her is what makes people care about her, and FC4's story so readable.