Yesterday at GDC, Peter Molyneux stepped up and gave us a bit more information about Fable III. One of the things he talked about was how at least half of the people that played Fable II didn't understand all the functions in the game.
Because of this, Fable III is supposed to be a lot more intuitive than the last game, including a room filled with different doors that you pop into when you pause the game. In that room you will have access to things like your personal wardrobe, where a butler - played by no other than John Cleese - awaits to help you pick out the clothes you need. A king does need to look like a king, after all!
Peter also took the time to talk a bit more about the weapons, which will change shape based on how many (and who) you kill and even your gamerscore will come into play! That's quite an interesting idea, and certainly a great move to turn us all into achievement hunters. The idea is that we'll all have our personal weapons, that we then will be able to sell to other players online.
There will also be a major change to how your character's looks evolve, a lot because women didn't like the level system that in the end made a female character look like a Russian weight lifter. Hopefully that include changing the voices a bit, since I personally had a hard time dealing with the fact that my female character whose skin was cracking and whose head was adorned with horns still sounded like an excited school girl whenever my dog dug up something.
Fable III will instead change your character depending on what you do, including turning you into a weight lifter if you only use heavy weapons such as warhammers; while making you long and thin if you prefer ranged weapons such as guns. Of course, remember that a healthy diet is needed to keep your virtual self fit!