Currently I am working on PCG system to generate dynamic quests. Till now I have found some papers and articles that talk about the subject. The most important in my opinion is Ian Parberry's and Jonathon Doran's paper "A Prototype Quest Generator Based on a Structural Analysis of Quests from Four MMORPGs" (here: http://larc.unt.edu/ian/pubs/pcg2011.pdf). It mainly analyses about the structure shared in most MMORPGs and uses that analysis to create a prototype quest generator. I have made an initial implementation of the ideas included in the paper.
But the problem with most (if not all) of the results I found so far is that they didn't manage to provide a good solution to the narrative and plot part of the quests generated. I mean, you can generate random quests with whatever length and complexity of actions you like. BUT making some kind of logical sequencing or consistency between the quests is not that good.
Unfortunately the idea of procedurally generated quests is not that clear or polished in my mind yet. So I hope through this thread to start a discussion about the latest trends in random/psuedorandom generation of quests.
Any contributions such as research papers, articles, tools or engines that help in defining the idea of generating good-quality quests will be very helpful.