XD News update for fable 2 thanks to the gods at Game Informer.
-Co-op (experience/gold/renown gained in friends game can be transfered to your own game)
-ingame music is affected by your pace during the fighting
-game is more sandbox than branced linear (think elder scrolls, or grand theft auto on uber steroids)
-player can choose thier characters gender
Spoilers:
-you start as an 8year old in a city
-500 years after fable 1
-the guild is in ruins
-monarchy in power
-"You may run into some characters from the first game."
-"Coop interaction doesn't stop with simple combat rewards. During the GDC demo where Molyneux was playing as a female hero, he finally returned home after six months of adventuring only to be chewed out by his husband for being away so long. Sick of the domestic dispute, Molyneux's co-op sidekick shot the husband and went into a fit of laughter as the young son ran away into the woods."