Format
iStory Creator creates iStories in the format of .XSP files, which can be read on the computer by opening iStory Creator and clicking the "preview" button. They can also be uploaded to any iPod with a screen through iStory Creator or by copying and pasting the folder containing the text files of the given iStory. The "Notes" section of the iPod can only read text files, so one cannot read iStories by simply copying and pasting the .xsp file.
Read more about this topic: IStory Creator