Told stories about knight that's ruled (5)
I believe the answer is:
lined
'ruled' is the definition.
(I've seen this before)
'told stories about knight' is the wordplay.
'told stories' becomes 'lied' (I've seen this in other clues).
'about' indicates putting letters inside.
'knight' becomes 'n' (chess**).
'lied' going around 'n' is 'LINED'.
'that's' acts as a link.
(Other definitions for lined that I've seen before include "Covered internally" , "Covered inside" , "pockets may be so filled?" , "Covered inner surface" , "Of face, marked with creases and wrinkles" .)