5MB update has major and minor fixes.
Lionhead has rolled-out a title update for Fable III on Xbox 360 which fixes a host of reported problems associated with quests, LIVE play and game saves.
Sanctuary: Fixed numerous issues whereby Jasper would stop talking or whereby the world map would become unusable
Quests: Tabletop: The Hobbes may not spawn in the last area causing the player to be unable to progress
Quest: Tabletop: Online multiplayer: Player host is unable to vault off platform to Hobbe area
Quest: Tabletop: Player can become stuck behind some rocks
Quest: Tabletop: After defeating the hollowmen in the room with the lever the player is unable to progress
Quest: The Masquerade: Player can become trapped in Reaver's mansion.
Quest: The Masquerade: Player can fall out of the world
Quest: GNOMES PART 1: Player can break script
Live: The players fall out of the world (FOOTW) when transitioning from Shifting Sands to The Veiled Path
Crash: Mourningwood guards audio
Crash: During the quest "Peace, Love and Homicide"
You'll find a list of the minor fixes on the Lionhead website.
It's taken about a month for the first title update to be released, in which time most gamers who picked up the title at launch are likely to be more or less done with the game. However, the update does at least ensure that those coming fresh to the game over the holiday season will have a less buggy game to enjoy.