The good thing about folklore/mythology/religion is there's lots of fluff to steal and to get good plot hooks from. And finding all the connections inherent in different mythologies is fun.
It doesn't need to be all European. In my current campaign, I've been inspired by Indian mythology/Hinduism and Irish mythology within the same forest, and I was recently doing Wikipedia mythology research about how I could connect the Indian story to a very common Western mythical forest creature (common in the sense that it recurs in different variations in English, French, Eastern European, and Hollywood versions).
As Joseph Campbell might say, a good story is a good story, no matter where it comes from. And as George Lucas would tell you, it's fun to mix and match. Samurai movie/"The Searchers" scene stealing/WWII bomber movie scene stealing/Western/1930s Buck Rogers sci fi? Sure, mix 'em up and you got the most popular movie franchise ever made.
Favorite fantasy books:
-- JRR Tolkien, Hobbit and LOTR (English, Norse, and Celtic mythology with cool new stuff)
-- Seamus Heaney's translation of Beowulf (Old English/Norse tale, translated by Ireland's poet laureate)
Favorite fantasy movies:
-- LOTR
-- Thirteen Warrior (Beowulf reinterpreted)
-- Conan the Barbarian (the most D&Dish, closest to Gygax's pulp inspirations)
College Majors:
-- History (Modern, Ancient, and Medieval)
-- Political Science (Comparative Politics, Int'l Relations)
MA: Political Science (British and European Union political economy)
Summary: Me like castles, and stories related to them.

Me no like gamey stuff.