The Oriental Tale in England in the Eighteenth Century is a 1908 book by Martha Pike Conant online for free at google books:
It's a pretty good overview of pre-20th century "Oriental" tales and their popularity in England, including lots on the Nights.
One interesting section was on pseudo-related Nights tales published and written by enterprising hacks:
"One of the most facile and prolific of French writers of pseudo-translations was Thomas Simon Gueullette (1683-1766). Four of his collections were translated into English under the names: Chinese Tales, or the Wonderful Adventures of the Mandarin Fum-Hoam...(1725); Mogul Tales, or the Dreams of Men Awake: being Stories Told to Divert the Sultanas of Guzarat, for the Supposed Death of the Sultan (1736); Tartarian Tales; or, a Thousand and One Quarters of Hours (1759); and Peruvian Tales Related in One Thousand and One Hours by One of the Select Virgins of Cuzco, to the Inca of Peru (1764)."