Story vs. Propositional Truth: A False Dichotomy

In recent years, there has been much debate about the competing claims of narrative and propositional truth.  Consider, for example, the following excerpt from "A Better Storyteller," Patton Dodd's profile of Donald Miller in the June 2007 issue of Christianity Today:

"In the next half hour, [Donald] Miller delivers a variation of a theme ascendant in evangelical Christianity. Truth is rooted in story, not in rational systems. The Christian mission is not well served when we speak in terms of spiritual laws or rational formulas. Propositional truths, when extracted from narrative context, lack meaning. 'The chief role of a Christian,' he says, 'is to tell a better story.' "

The question we will be considering is this:  How do we acknowledge the distinctive claims of "story"--which have indeed been slighted--without setting up false dichotomies (as above) and otherwise becoming muddled?