Fable Anniversary Announced, Coming Later This Year
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As for what this re-release entails and when we can expect it to come out, I'll leave you to the words of the devs themselves:
News today is that Lionhhead are bringing Fable Anniversary, a re-mastered version of Fable: The Lost Chapters, to Xbox 360. Promising a complete HD graphical overhaul and achievements for the first time, Fable fans will be able to rediscover the game that started it all later this year.
Ted Timmins, Lead Designer, who worked on the original Fable as a games tester: (We're really excited to be bringing a re-mastered version of Fable: The Lost Chapters to the Xbox 360. It's been one of the biggest community requests as we know how much the fans love the original game.)
There's also a an official Major Nelson podcast on the title, with lead designer Ted Timmins offering some additional details on the title. Some of the improvements mentioned include better graphics, reduced loading times, an updated control scheme and UI that should more closely resemble Fable II and Fable III, a new save system that sounds checkpoint-based, and Smartglass integration.