This is the most common setting in Ayenee (or was, when I began), and the one in which I play.
While all roleplay is fantasy due to its not being real, what I mean when I say "fantasy" is that this setting contains creatures which don't exist in the real world. There are dragons, elves, fae, vampires, werewolves, demons, anthromorphic creatures (hey, just because I don't particularly like them doesn't mean they don't exist), dwarves, gnomes, earth-bound angels, nymphs, pagan gods, demi-gods, elementals, so on and so forth, ad infinitum. One can, of course, play a character with the belief that these things don't exist, but as a general rule, an Ayenee native is going to know these things and live his life by them.
This is also a place of magic. Most, if not all, of the creatures mentioned above can learn magic, or use magic by default (humans exist on Ayenee, of course, they just weren't mentioned in the list because they're real). The use of magic can often make a place strange, and so it is not completely out of the realm of possibility that someone from the modern world (either Earth, another world entirely, or a future Ayenee) can stumble upon Ayenee, much like those loveable English kids stumbled upon Narnia. However, just because your character knows what Black Russian is, or what Coca-Cola is, or how to fire a gun, does not mean that these things exist in Ayenee. If you came to Ayenee with a gun in hand, you'd better be careful with how you fire it, because no one sells bullets here. Similarly, if you came to Ayenee in a car and the car was taken with you, be careful how you drive it, because there aren't any gas stations.
Places can, however, be modernized to some degree. Take The Bucket of Blood as an example. The owner of this particular tavern didn't understand the concept of running water, because piping systems hadn't been invented yet. However, Nicholas, who is from a false version of the real world, got thrown here and was fed up with doing his business in a hole and having to carry hot water from a fire to a tub to bathe properly. Having discovered magic after some time, it was discussed whether this problem could be fixed. And, voila! That much was! Magic can give many people modern conveniences, however, the knowledge of what the purpose is and how it's to be done has to come from somewhere. If your character doesn't have an inventive mind and hasn't been told how to do this as Joe was told about the concept of running water, you're out of luck.
If this isn't clear enough, either e-mail me or post in the GuestBook about things I should explain more thoroughly. Keep in mind that the relationship between Ayenee and Earth is discussed in a completely different section.