Fable II Walkthrough

Follow the glowing trail to the base of the mound you're on and look around the backside of the mound (not quite off the ledge and into the water) for a chest with a Economy Value Necklace. You can freely roam the lake area to find many more secrets, but for the sake of the walkthrough we'll only point out the secrets that are near your path. Follow the glowing trail to the entrance to the road to Bowerstone.

You'll find the road is blocked off, though the friendly Bert lets you know that you can defeat the bandit Thag to open up the road. Follow the glowing trail north, dropping down the hillside until you hit a path that leads into the woods and to Thag's bandit camp.

Enter the camp (boldly!) and an initial pair of bandits will appear. Fight 'em off using whatever skills you've got (the Shock works quite well, as does the roll maneuver afforded by the Dextrous Styles) and be prepared for more bandits to appear in groups of two or three. The Shock attack stuns enemies, letting you disable one baddy while turning to fight off another without having to fear getting attacked from behind. When all of Thag's minions are defeated, Thag himself appears.

Thag's not quite the pushover his thugs are, but he's also not very difficult. As Thag approaches, tag him with your ranged weapon and blast him with Shock. Shock doesn't have much of a stun effect, so you'll need to rely on evasiveness to keep from getting hit. If you've got the Dextrous Styles upgrade, you can use an attack-roll-attack-roll pattern to tag Thag and immediately evade any counter attack he throws. Fight smart and he'll die quite quickly.