I have wanted in-code documentation generation tools to serve this purpose; but I have never succeeded with them. It had always felt like I was battling the intent of the tool. Even Eiffel’s notion of different views on code-as-documentation never quite fit for me. This approach is fascinating; it allows for you to tell a story about the code as you write the code. Having posted to the PLT list asking about it here; two folks replied with details on this style and Scheme.
A tool for literate programming in Scheme called is schemeweb located here (Thanks Phil).