Yes you can say "a writer's famous story" = "a story that belongs to a famous writer" with the correct grammar in it! "a story about a famous writer" = the famous writer is the subject of the story. " a famous story written by a writer" = the writer is unimportant/ unknown but the story is famous, like front page news.
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AnonymousDoesNosthis phrasehashave the following four underlying meannings?
AnonymousA story about a famous writerPossibly
AnonymousA story written by a famous writerPossibly
AnonymousA famous story written by a writerA