On the commentary track on the original TCM's DVD Tobe Hooper goes into the fact that although he had heard stories as a kid (as the article says) he wasn't aware of the real Ed Gein until after he made the movie.
And he denies basing the movie on anything but his own imagination (which of course was probably at least partly fueled by the stories he had heard as a kid).
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Originally posted by CSflim
Fargo - Based on a true story.
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Yep, another example of a filmmakers tomfoolery. Although, the Coen brothers have always freely admitted that the "Based on a true story" title card at the beginning was just a stylistic device.