I have a saved file of Fable 2 already on my hard drive, i was wondering if i downloaded the episodes if i could continue the game i already have

As far as I've seen on the forums ,  you shouldn't have a problem. If you have the disk its not worth getting the chapters since they are the same on the disk.

awesome, i was curious because i was borrowing my friends game and i got a little more than half way and i just really didnt want to start over if i could avoid it, plus being able to launch it from the hard drive it a really attractive feature for me