Dave (no last name I could find) has finished a complete medieval town built out of Legos, which looks nice.
Even more amazing is Anthony Sava’s extensive Lego sets for his Kingdom of Ikros site.
I am about to get started on a huge multimedia project that’s going to eventually involve a Lego set-up something along these lines, and these two pages have a lot of great ideas for medieval/fantasy Lego getups.