My cousin has fable 1, the story doesn't really link up to fable 2 because of the fact it's like 200-500 years later and all heroes are forgotten, the heroes guild doesn't exist. Your sister dies in fable 1 and 2. I got on the 360 Fable 2 Episode 1 and 2, and the gameplay is pretty different from fable one but it is fun. I think I like fable 1 better. The graphics aren't as great, but it's an xbox game, and a kinda old one at that.
I say you should get it.