The guys on the Lionhead twitter recently tweeted this little awesome video interview from the guys at Switched. While theres nothing new on there to speak of, there is some footage of the game from the ViDoc and of course there is Peter himself looking suave as always and full of emotion.
As well as Fable Peter talks about Natal and Milo, and the beginning of interaction with characters like never before in games. Its certainly an interesting prospect and would revolutionize the RPG industry for a long time to come. Would certainly make those meetings in roleplaying games between characters and NPC's a lot more interesting.