It's actually much easier than that. For the 'Lalaith' part of the clue, you need not an anagram but a literal translation.
To help you all, none of the answers is a person or a place. 
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"Sit by the firelight's glow; tell us an old tale we know. Tell of adventures strange and rare; never to change, ever to share! Stories we tell will cast their spell, now and for always."
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