I havent played the earlier instalments of Fable, but looking at the videos and trailers below for Fable 3, they have created a rich and intriguing world. What is interesting for me looking at the imagery is the effort that has gone into the costume, equipment and building designs. The VillagerMaker is a web system to design your own villager who you can then include in the game you will play. This is a clever idea, there werent too many options but they include both physical and personality traits.
Here are some screenshots showing off the costume and environment design work and then some cool vids (run chicken run):
[Fable 3 screenshots via the official site]