So, I know that you can make adventure games with the AGS software, but is it possible to make a text-adventure game? And if so, is it just a matter of scripting?
Yes and Yes.
Look into the parser function from the manual. If designed right, it can lead to a great game (one AGS that comes to mind would be Trilby's Notes). If designed poorly, then it simply causes frustration and unwillingness to play your game.
Also, you can create both a straight text adventure, and one with a main graphic depending on your room. I'm almost curious as to which that you wish to make.
~Trent
If you want to create a text-only adventure, you might want to look into Inform (http://www.inform-fiction.org/inform6.html).
Thanks for all your help. I'm actually in the process of making a ww2 game with AGS, but I was just curious if a text game could be made.