Depending on how players act towards different characters in Fable 2, the outcome can be good or bad. Although interacting with NPC's can create different scenarios and events in the game, these minor alterations won't have an effect on the major factors determining the storyline.IGN: Fable 2: Meet the Populous (June 18, 2008)

Arfur is a murderous thieving type of person introduced to players early in the game. His purpose is to show players that the area where they grew up isn't a very good place. Arfur will be around during different times throughout the game and interacting with him will progress certain events.IGN: Fable 2: Meet the Populous (June 18, 2008) As a child, give him Search Warrants to open up more assassination jobs later in the game.

Lucien is the villain of the main story in Fable 2. Having lost his wife and daughter, he is filled with dismay and is looking for some way to resurrect them. At the beginning of the game, the player character and his or her older sister are summoned to Lucien's presence after purchasing a magical box. Lucien tries to determine if the player or the sister hold some sort of special power and ends up shooting both. The player's sister perishes, but the player character survives to seek revenge upon Lucien. This makes up the main plot of the game.Wikipedia: Fable II