Also the font (like when you are upgrading your skills and on the right it says what the skill is for) appears to be black and has a shadow making it near impossible to read.
I have the exact same problem. I believe that it is due to an incompatible video card that does not support vertex shading or hardware texture and lighting. Check the Fable website at http://www.microsoft.com/games/fable/support.asp
and look at the list of video cards supported by this game. If you dont know what your video card is, click on "start" and then "run" and type "dxdiag," and then look at the display tab. If your video card is supported, go to the manufacturers website to make sure you have the latest drivers installed. If the video card is not supported, try updating it. Hope this helps. Post a reply if you find a solution.
It's your graphics card. Its not strong enough to have your graphic settings high enough. Im pretty sure that if you look at your video settings you'll find that everything is at minimum. My brother had the same problem on his computer and then he changed it to a N-videa 6200 and it works great.
