Anders Fagerjord blogs intriguing narrative experiments with Fluid by Polle Zellweger, Anne Mangen, and their colleagues (17 Sept 2002; no permalink?).
What I actually said at DAC 2000, I think, was that Anne Mangen's hypertext mystery story in Fluid appeared to be the first attempt at a stretchtext narrative in many years. I do think (pace Fagerjord) that this is possible. But it's intrinsically difficult. The state of a Web hypertext, for example, is its URL (and perhaps your cookie jar); the state of a stretchext hypertext is contained in all the links you have expanded, or not expanded, or expanded and then put away, anywhere in the text. Figuring out what to do with this beyond excursus is, I think, a very interesting problem. (The Fluid paper in Hypertext 2002 is very good, by the way, although I do not believe its critique of contemporary hypertext is entirely convincing. I've argued elsewhere that mystery stories are especially difficult for hypertext. Your results may differ.).