IGN:
11:38:Molyneux exits the stage and John Schappert comes back.
11:37: The male partner shoots the female partner's husband! He's dead. You can kill your friend's wife or husband. Now the guy is pointing and laughing, rubbing it in.
11:36: The duo are going back to the girl's home. The son runs out and welcomes mom home. The husband isn't as pleased. The girl has been gone adventuring too long.
11:35: The two players are going into combat, teaming up to take down little guys that probably wouldn't put up much of a fight alone. Poor guys. Some framerate issues are popping up here or there.
11:34: Anything you get, such as experience, in another's game you can bring back into your world.
11:32: Now he is showing the next big features -- its co-op! You can hop in at any point to join another person's game. This is shown offline. You can bring your character into another person's world to quest.
11:30: Peter is demoing the game with a girl. "I have been pregnant. There is no labor mini-game."
11:28: Actually, this is an XBLA game outside of Fable 2. You can take the money won in that game and bring it into Fable 2. You can be rich before you even start playing the game!
11:27: First he is talking about money. You don't get it for doing quests. You get it for doing jobs and for gambling. Molyneux shows a pub game as an example. It is similar to roulette but with dice.
11:25: Peter Molyneux takes the stage to do a live demo of Fable 2.
Gamespot:
[11:29] Now it's Molyneux's turn to take the stage. Apparently Fable sold 3 million copies on the original Xbox, and it’s no surprise that he's here to talk about Fable 2.
[11:32] Molyneux is here to talk about "several new features" in Fable 2. The first is a pub game which looks like a competition between roulette and craps. And the game is actually a separate game Xbox Live Arcade game which will allow people to gamble and win money which can then be imported into Fable 2. The game--called "Keysto"--will be released on XBLA a few weeks before Fable 2 "so you can save up money."
[11:34] Molyneux then shows off his Fable 2 character--a pregnant female warrior--before announcing another new feature: dynamic co-op play integrated into the game. It will allow people to be called into a game at any time using their Gamertag instantaneously.
[11:36] After summoning a friend, Molyneux battles some foes using Fable 2's "dynamic crescendo combat system" which allows players to use one button for swords and another for swords.
[11:38] Molyneux's character then returns to her home after a six month absence. Her son admonishes her for being gone so long. Her husband also nags her, leading his co-op partner to blow said husband's head off and laugh. Apparently such actions are irreversible, so Molyneux tells the crowd to "be careful who you invite into your world."
Credit goes to
Portarock 
