My favorite story would probably be from Greek Mythology. I forget the name of the main character, but one day, he was walking through the woods. He came upon two mating snakes, and he killed one. Somehow, through a series of mythological events, he was turned into a female. So for three years he was like this until he killed another mating snake, turning him back into a male. Meanwhile, Zeus and Hera were arguing over whether the male or the female enjoys...erm..."getting it on" to put it lightly, better. They called upon our friend who killed the snakes, and he said that females get 3x more enjoyment, having done it himself when he was a woman. Hera proceeded to cripple him and make him blind. Zeus repayed him with foresight.
My favorite character is probably Perseus. He was really one of the only heroes in Greek Mythology with a happy ending. So here goes: Perseus was the son of Zeus through Danae. Danae was being imprisoned by her father because Zeus was trying to get her, but Zeus popped up in the middle of the place and impregnated her in a shower of gold. Once she gave birth, the king sent her out in a wooden box with her son. Once they arrived at an island, she was taken in by a fisherman who fathered Perseus. One day, the brother of the fisherman guy, Polydectes, wants to marry Danae. The only thing in his way is Perseus, so he sends Perseus on a quest to slay Medusa, thinking he will die. So off Perseus went, and on the way there, Hermes gave him his curved adamant sword, Athena her highly-polished bronze shield, and Hades gave him his helmet of invisibility. He went to the home of the Gorgons, and killed the three sisters, including Medusa. On the way back, an Ethiopian princess is about to be eaten by a sea monster. Perseus, being the gentleman he was, slayed the creature and took Andromeda(the princess) back with him. When he got back, Polydectes was about to marry Perseus's mother. Perseus went over to him and showed him Medusa's head, turning him to stone. So, this story ends with Danae being a free woman and Perseus marries Andromeda, goes off and kills some people, and settles to be the king of Mycenae. Pretty much like Happy Gilmore, only more killing and less golf.
My favorite event would have to be during the war between the Gods and the Titans, the Cyclopes and some other creature I can't remember would make weapons that fired themselves in seconds. They were cool guys.
If you had a favorite mythical creature/group of creatures part, I would definitely say the Valkyries. They hovered over the battlefield, waiting for someone to die. Half would go to the Hall of Valhala, where they would fight in the day and feast in the night. Half would go to the Field of Freya, where they would do errands and have fun and stuff...
@Whimsyboy: The guy in the myth, that you're thinking of, his name was Tiresias. My favorite mythology is probably Greek. Favorite character is probably Nike, goddess of victory. Favorite story; Hercules. Not the happy superhero part, but the part where Hera drives him insane and he kills his family. Because I just like that one, especially telling it to little kids. xP.
My favorite mythology is Greek but the Egyption myths and the Norse myths aren't too far begined it. I would have to say that my favorite character is Hades and that my favorite mytholigicol creature is dragons but I can't think of a favorite myth right now.