Why do the storybooks parallel what's happening to Jennifer?
The storybooks Jennifer finds/receives in the game most likely never existed in real life and were just products of her mind to help her remember her past.  During the time she was with Gregory, he no doubt gave her storybooks he had written to read, just as he did with his son, who he thought she was.  Sometime after she left him to go live at the orphanage with Wendy, she might have met up with him at the bus stop, struggling to write a happy story about a young girl.  He ended up telling Jennifer about how hard it was to get a happy ending in real life, then apologized for lecturing her and offered to write a story about her, in which she would be a princess.  This would explain why her mind conjured up the "Little Princess" as the main story of her life, looking like the storybooks Gregory used to write. 
The storybooks Jennifer doesn't find, are given to her by either Gregory or Wendy disguised as Joshua.  This makes sense, since she would connect the books to those two individuals.  The books all relate to events or people who played an important part in Jennifer's childhood, but they are twisted to resemble morbid fairytales.
Back to the FAQ?
Hosted by www.Geocities.ws

1