Quasqueton, I do so enjoy your topics.
It is all about group dynamics, what is the group you are playing with like? What type of game do they play; fast and loose, thight and controlled, more role-playing or more roll-playing, descriptive or text book. There are so many combos.
If a DM has something happen, or an NPC do something that "breaks" the rules, does it bother you in any way?
No - Rule 0: The DM has the right, it is his/her game.
Is it OK if the "something" is interesting, or makes for a good story?
The DM has the right, it is his/her game.
If a DM prevents or disallows a PC from doing something within the rules, does it bother you in any way?
Yes - Players have their own books and IF it has not been discussed before hand the player should not be penized for playing their character.
Is it OK if the "something" would make the situation less interesting, or undermine the story?[
The DM has the right, it is his/her game BUT there needs to be a reason, character interaction, character devolopment, cold, flu. This is why you have house rules, you should not bend or break rules in game but address them prior to the game or after the game, explainnng the reasons for the bend, break, change.
Is it good DMing to bend/break the game rules for the sake of a good story?
No - The DM has the right, it is his/her game BUT it is more important to have fun, this means players and DM, sometimes the story has to take a backseat. This is why you have house rules, you should not bend or break rules in game but address them prior to the game or after the game, explainnng the reasons for the bend, break, change.
Is it good DMing to make the story work within the rules?
Yes - Everyone likes it when a plan comes together, having a story within the rules or having the rules work within the story, if it works and the players interact with it and all have fun, it is a good thing.