I'm having a (worse?) variation of this same problem. After finishing the first adult mission (island tomb) I saved and quit the game. The next day when I loaded the game, after the LionHead logo comes up, the screen goes white and it just locked up there on the white screen. I deleted my save games and tried again, but same thing.

I tried the Y,X,X,LB,RB,X,X option, but it did not solve the problem. Now, it gets past the LionHead logo and I get the Fable II title screen. After I press A, the music dies, but I get the startup screen. When I select "New Game" it just locks up for . Any option I pick from this menu locks up. Suffice it to say I'm quite angry and frustrated. I tried applying the patch again and it does the same thing still. Sadly I didn't keep my receipt either so I'm not sure what to do at this point because I'm stuck with a $60 coaster.