I think it depends on the story.

For example:
We have a "legend" at our camp concerning one "KiWalker." Folksat my camp will know what I'm talking about. OH, and the little girl in the nightgown from the summer of 04. Both of these scare the pants off of even our oldest girls. So we try not to tell them, but of course the story gets spread anyway.

However, there is a "ghost" who lives in Manor House named John who is really nice and loves his CITs. He's just mischievious, not mean or bad. (But supposedly there is a "portal" to an etherworld up in the crawl space in Manor, which is why it's all boarded up...) And we also have a legend of the Storybook Tree about a girl who got lost on the mountain and a tree protected her or somethign... Don't remember exactly.

So it really depends on the story, even if it is "tradition," you know? THink about the age group you are working with. If it's soemthing that scares you when you're in the woods at night, DON'T tell it. (Unless you don't scare easily, then just think about how scared the girls would be.)