STORY STRUCTURE
The most basic template for the commonest type of story is a three stage development:

A situation.
A complication of the situation (ideally involving a confrontation of some kind)
A resolution of the complication.

From this basic model has grown up a complex set of conventions and rules. So ingrained are many of these conventions that we often apply them unthinkingly. Ninety nine percent of the films made as public entertainment employ them.

The Classic Story

The Classic Story reflects the conservative traits in human nature. It has certain structural characteristics which reinforce an audience's belief in their intrinsic self-worth and effectiveness and the idea that the world is a meaningful place governed by the laws of cause and effect:

It is told more or less in continuous time; following a logical sequence
It employs a consistent reality and emphasises external conflict.
It invites audience involvement and anticipation with a predominating and consistent point of view.
It has a closed ending; restoring a sense of "order" and leaving no "remainder" to puzzle the audience.
It makes no use (or very sparing use) of coincidence (Comedy is obviously an exception)

The Minimalist Perspective

Naturally there are those who deliberately flout these rules; pointing out that the world is not ordered or inherently meaningful. This perspective is often found in European drama and cinema. Some of its characteristics are:

Open endings, broken time frames,
The use of coincidence and portraiture as dramatic devices
An emphasis or reliance on internal conflict

Foreground and Background

The Foreground Story is a term used to describe the literal action that takes place within a narrative (usually action involving the protagonist). It might be described as "motion orientated". Most films feature some kind of action but they may not necessarily have a Background Story (i.e. typical action/adventure stories) The Background Story is a term used to describe those aspects of narrative which are "emotion orientated". Decisions or dilemmas; conflicts derived from the interior life of the characters (i.e. romance stories).