His letter from camp says that he is having a good time. It is an adverb phrase that modifies the adjective his.

It is an adjective phrase that modifies the noun letter.

It is an adverb phrase that modifies the verb says.

It is an adjective phrase that modifies the pronoun he.

one thousand and one nights, also known as arabian nights is a collection of stories whose basic structure is that of embedded narrative. this technique refers to a main story which works as the common frame - or framing narrative - for the other stories, and then this series of stories which are connected to the main one. this technique can also be referred to as a story within a story. the stories stem from the original tale, some begin and end on their own, some are connected to the previous or following one, by means of questions that are answered in the subsequent tale, or characters which reappear.