Just cancelled my preorder due to the totally bullshit implementation of co-op. This was the game's big selling feature, and my gf was totally disinterested in playing after I told her how it worked.
I'm really glad I brought this up in the thread before it actually shipped out because otherwise I might've been stuck with the game thinking the co-op would allow you to import your characters, just like the other people here who were confused that it would actually be real co-op.
I've read in interviews prior to the game's release that you could import your character, and Henchman were pretty much reserved for players who were 'dropping by for a beer' and didn't already have a character or gamertag.
Seriously, it couldn't have been hard to make it at least look like the character you created and have the same equipment. Virtua Fighter 5... a fighting game, is able to do this. Why was this design choice made? Like... there's no custom textures or anything... you're just displaying your character with the ingame graphics/stats/equipment that are already on each player's disc. It boggles my mind that one of the most touted features of the Fable series: how your character looks and is shaped by the world, is thrown out the window when you want to play Fable II's other big feature: co-op.
This co-op, especially since it had to be patched in on release date and was behind schedule, is a huge embarassment.
http://www.gametrailers.com/player/30760.html
" Anything you earn in my world as a henchman you can port back into your world."
" He is able to do everything that I can do."
http://gamevideos.1up.com/video/id/17630
" This character here is based on his hero if he has a profile on this box."
" If he doesn't, it's generated based on who I am or what I'm like."
http://www.xbox360fanboy.com/2008/07/09/create-a-henchman-in-fable-2/
" Plugging in a second controller brings up a menu which then allows the second player to create a new henchman and carry on playing. Sounds like just the ticket for some casual gaming friends who don't want to bother creating their own full character. "