There was a city of Troy, several in fact. There was also a Trojan war, again, several. Was it actually called Troy? Doubtful, but I expect the inhabitants name for it was something that could be corrupted into Troy. The city itself was strategically located for a trade center and thus quite rich which is likely why it was destroyed by it's enemies (read that as competitors). What we really know about the ancient past is very little and much based on fragmentary evidence and guesswork. There's a fun show on, I think, History International, I'm not sure off hand. The Naked Archaeologist. It's focus is more Biblical Archaeology and pretty funny at times.