Elibian Nights is the primary project of the hacker, Arch. The project originally began as a remake of the BS Fire Emblem games. BS Fire Emblem was originally four separate stories, taking place before the events of Fire Emblem 1. The project would remake the four tales, and perhaps add some new tales for other Archanean characters. Named after another collection of fables, The Arabian Nights, the project began with a slow start.

The first unveiled screenshot of "Archanean Nights."
The Knights, Jacob and Nayr, are sent to find a storyteller said to be from a faraway land.

The project never really went anywhere in the first few months, due to Arch's work on Fire Emblem 4 Advance. Then, as details for Fire Emblem 3's DS remake came out, the fatal blow to "Archanean Nights" came.
 Nowhere else really to go after that, is there?
"Archanean Nights" was never heavily showcased publicly, so it seemed like it would fade away. Just when the project seemed dead, one of the graphics artists enlisted for the project, Nayr L. Rosfar, approached Arch about keeping the project's idea intact (the aspect of telling tales about canonical characters), but shifting the focus to the well-known continent of Elibe. At first, Arch was reluctant to begin the project. The first tale began as a "pilot" of sorts, to see if Arch could get into the project.

The original "Elibian Nights" screenshot, complete with a tile glitch.
The first tale's public debut unleashed an overwhelmingly positive response, with some commentators saying that they would prefer this project to FE4A. Development focus soon shifted to the infant Elibian Nights, eventually becoming Arch's primary project as FE4A withered away. From there, Elibian Nights has evolved into the project you see today.