Yes Quagmire, and the Oddysey probably is mostly fiction. It's been shown that the Oddysey probably isn't even originally a Homeric work. It's style is much different then the Illiad's, not to mention it is irrelevent to the conversation, since I am speaking of how the Illiad mentions the Trojan War, and we have discovered a ruined Troy under the sea.
The Iliad and The Odyssey are examples of Oral Poetry. They were sung by poets long before the written word was used to copy down stories, therefore it's almost impossible to know whether or not, infact, the two were composed (not just written down) by the same person, though there is much debate on the subject.
As for Historical Insights found in the Iliad, they have led archaeologists to determine an actual site which
may have been the city of Troy. I may be not remembering my class in Heroic Epics properly, but if I am, I believe that it is also widely thought that King Priam was an historical person. If I remember correctly, a list of kings, appearing to date to some time after the fall of Troy is believed to be, was found, and the name of King Priam was found on this list.
Sources: Again, University class in Heroic Epics in Greece and Rome. As I said, I may not be remembering correctly, but I think I am. I'll check my text book when I find it.
As for other historical insights dealing with the Iliad, I'm not sure there are any.
EDIT: Also, it's believed that there
was, infact, a war around the time of Trojan war, but that Homer's account of it in the Iliad is highly fictionalized.
