Great grandfather told the story of an ancestor from France, who after his wife died, came to Australia with two children, dumped them, and went on to New Zealand. The wife was a "dancer" and my mother grew up convinced she had prima ballerina in her genes.
Truth: They were Belgian (French-speaking) and both husband and wife came to Australia with two children. The wife died in Melbourne a year after giving birth to the third child. The father put one child in an orphanage, one with a Minister's family and the baby disappeared, but apparently he hung around long enough to raise some money for their educations. The "dancer" died of haemmorhage in an alleyway in Melbourne notorious for its ladies of the night. The husband had been disowned by his own family in Belgium for marrying "beneath himself" and that is why they came to Australia. Just as "exotic dancer" is today a euphemism for stripper, I think our prima ballerina may have been something a little more salubrious!! My mother is most disappointed. I'm thrilled.
Most of the problems with family stories passed down is that each generation likes to add a bit of their own spice, as well as cleaning it up a bit, and of course there are also misunderstandings as well. I think my ggrandfather did well, considering he was close to 90 when he told Mum the tale, and he was actually talking about the ancestors of his first wife, who had been dead for more than 20 years!
Every time I speak to other researchers on my husband's side, they have found some amazing link to royalty/nobility/criminal masterminds, etc, usually due to surname only i.e. if there was a Nelson in the family, well all of a sudden gggggguncle Horatio pops up. It's all crap, of course, but anything to relieve the tedium of 8 generations of Ag Labs!
Did have a very sad rumour confirmed by a very sprightly great aunt a couple of years ago, though. One sister had an affair with another sister's husband, and the resulting child was born with Down Syndrome. The whole family split as a result. The child was raised by the father and his wife, but eventually institutionalised, and we found out of his existence just two short years after he died - if we'd known he'd existed ....