I'm at work so I can't post some links. Sorry.
Donjon from Clinton Nixon. Same fellow that did The Shadows of Yesterday mentioned earlier.
It's not free, but I'm a _huge_ fan of Zorcerer of Zo. Written by Chad Underkoffler. You can find more information about the system (PDQ) here:
http://www.atomicsockmonkey.com/freebies.asp The version of the rules that you can download from Atomic Sock Monkey are slightly out of date. ZoZ uses the "good parts" version of the PDQ system, which streamlines things a bit.
I explicitly ran this as a zero-prep game for my wife. After some time I switched back to doing minor prep just because I personally felt more comfortable with that.
You can read a review of it here:
http://www.rpg.net/reviews/archive/12/12677.phtml
For sale here:
http://enworld.rpgnow.com/product_info.php?products_id=23431&it=1&filters=0_0_10113
I'll note in passing that while the game is "fairy tale like", it doesn't have to be run that way. There's a humorous fantasy version of PDQ available called Questers of the Middle Realms.
http://enworld.rpgnow.com/product_info.php?products_id=20359&it=1
Tunnels and Trolls seems like it'd be pretty good (v5.5 or whatever the last one was before FFG got ahold of it) but I can't actually speak to it.
In a Wicked Age also seems like it'd be pretty good for that, but it's also aimed pretty explicitly at a _group_ of people, and since I don't have a group willing to try it (D&D/WW games only) I can't do anything with it.
Hero's Banner also seems like a pretty good possibility. The "generational" nature might not quite work for some people though. You can find it here:
http://www.lulu.com/content/359191 and read a review of it here:
http://www.rpg.net/reviews/archive/12/12838.phtml
Trollbabe seems like a pretty cool game too. I haven't had a chance to do anything with it, but the premise can be changed pretty easily to fit a number of different sorts of things. The key thing being that the character(s) is in conflict in some fashion.
A number of people dislike the creator of Trollbabe for various reasons. If you don't care about rpg theory and that whole thing, you should be fine. If you do, you probably already know whom the creator is and have your opinions formed.
http://www.adept-press.com/trollbabe/about.html
If you've got no idea what to do... In a Wicked Age seems like it'll handle that pretty good. For my Zorcerer of Zo game, I played around with developing ideas from either using the Once Upon a Time card game (Atlas games, makers of Feng Shui and other stuff) as well as Georges Polti's 36 Dramatic Situations. I actually have an ancient (1926 I think) copy of the book, but you can find them here:
http://www.gamedev.net/reference/articles/article255.asp
As with everything, people like to argue about how many dramatic situations there _really_ are.