What was believed to be to the South (past north Africa), North (past Scandinavia), East( past Iran/India and the plains of Russia) and West (past the Atlantic) by Western Europeans before the age of exploration? Is there any myths or stories about the world beyond Europe from the time?
I believe the work of Ptolemy was still very influential during the Middle Ages. The general idea was a circular continent with the Mediterranean at the middle. That's probably the 'simple' way of explaining it, but it is clear there was at least knowledge of the Far East from trade and the likes.
Religion also played a large part in shaping 'perceptions' of the medieval world, and almost every medieval map of the world will show Jerusalem at the center (e.g. See the Mappa Mundi at Hereford).
There is also an interesting account of the 6th century Irish Monk Brendan the Navigator, who sailed out west and some say discovered America. These accounts inspired the view of what was out west, and Columbus is said to have inquired into the account of Brendan before sailing in 1492.