Fable:TLC has no native gamepad support. However this is a PC game so you can do whatever you want and use every possible input device you could think of. Wanna try using a Wii-Controller? Try finding an emulator for Windows.
The best input mapper for the 360 controller is XPadder. If you use this and configure it correctly, you can play Fable:TLC with the controller or any other Direct Input device I think.
Everyone should boycott Ubisoft and their new Online DRM for PC games. This has gone too far in the reduction of the rights of users and I am sick of it! It is not made to fight piracy, but to control the customer.