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I was getting the same problem with this game.... now it works just fine!!!!
1. Right click on the Fable "Troubleshoot compatibility."
2. Choose "Troubleshoot program."
3. Check the box that says "The program worked in earlier versions of Windows but won't install or run now."
4. Select Windows NT 4.0 (Service Pack 5) and click Next.
5. Click "Start the program..."
Then, save the program.
1. go to the hard drive, 2. SteamLibrary, 3. SteamApps, 4. common, 5. Fable The Lost Chapters, 6. right click on the Fable icon, 7. properties, 8. compatibility, open the drop box and select Windows XP (Service Pack 2), 9. Under Pristige Level, check Run this program as an administrator. Click Apply and then OK. Your game should load up perfectly now. Hope this helped everyone, it solved my crashing problem.