I just bought the game yesterday, and it is awesome!
The game takes place like 500 years after the first game.
The sad thing is they brought the scar system back from the old game, but you only get scars this time when you die. The game is a hell of a lot bigger then the original, and they show the aftermath of a lot of places. Oakvale (the original hero's hometown) has become consumed by the marsh.
This time you play as either a female or male character, and the dialogue is a little different for each. I picked a female char because I knew there would be plenty of funny dialogue.
This time you're allowed to swim, but it's similar to the GTA4 style swimming.
You have a dog in the game, and there isn't a choice whether or not you want him, he's more of a sidekick if anything, which kind of make you feel helpless in certain situations.
The game itself though is a true next gen game, and any rpg fan that owns the 360... This is a must buy. Although you probably won't get any of the references to Fable 1 if you never played it.
Veterans Day