So the solution to a problem is here: - Deinstall K-Lite Codec Pack! (If you dont have it, then probably one of the codecs included in it is to blame. Go to k-lite codec pack home page (codecguide.com), look for the list of components and deinstall them on your computer) - Install some other codec pack if you want (For example XP Codec Pack

Well, I guess the problem was K-Lite Mega Codec Pack 3.5.0. After installation of it Fable started to crash after messing with options. But unfortunately uninstalling K-Lite on my primary Windows didnt help...

Will try it a few hours later...

Well, I've installed all of the windows updates and Fable running ok... So, I guess it's software-based problem or something I just dont know...

Read about this in the Official Fable Support Topic. I have ''Midnight'' Theme activated (I dont use programs like Blinds etc), but I've tried to switch to original XP Theme, Original Windows Theme, even disabled ''Themes'' Service In Computer Management. Still Fable does not work.

Didnt work for me too, unfortunately... But thanks for your info. If anyone still has the same problem as me and NeoSquall86 do, please list the software installed on your computer besides Fable. I'm still testing Windows Update, the problem might be in some other software... I have:SCAD Office 11uTorrentABBYY Lingvo 12ACDSEE 10 Photo ...

24 updates installed so far no luck...  Will continue later...

Well, it's 86 updates remaining :) I was kinda busy for the last few days. Will start testing them tonight, so there will probably be news in a few hours.

So I've installed a clean copy of Windows XP SP2 (with no Updates) on a separate partition. Then I've installed all the latest drivers for my hardware. Then installed Fable. Fable worked fine, so I guess we can exclude hardware. Then I've installed updates for Windows Update service (Windows Installer 3.1, KB898461, WGA Validation Tool ...

Will try tomorrow, and post the results after...