After months of trying to figure out what was wrong with my PC I have finally found the issues!
2 problems with my PC caused this Fable music stutter.
First of all I had changed the motherboard then Fable had some odd stutters in the music.
So I went out ande bought an Audigy 2 ZS which did not fix this problem.
In fact it made it worse.
Searching around I found out the Audigy 2 (ZS) & 4 series need to have te turbo in one of the registrys changed to the value 0 instead of 1.
Tried the game again and indeed it did help with the music stutter but did not completely get rid of it.
So I looked for the oldest thing in my rig to replace which was the 2.4Ghz 512mb 800FSB CPU made in 2001.
I replaced it with a Prescott 3.0Ghz 1mb 800FSB HT CPU.
This was going to be the last thing I was going to replace on my rig since it is dated & luckily for me this IS the answer to the music stutter issue in Fable.
For some strange reason the new motherboard, an ASUS P4P800 SE did not like the old CPU.