Open the zip and move xlive.dll and xlive.ini into your main Fable 3 install directory (usually found in Steam\steamapps\common\Fable 3 ).
Inside that new DLC folder, create three folders named exactly: 01_Understone 02_TraitorsKeep 03_InquisitorsPack .
Right-click Fable3.exe and FableLauncher.exe , select Properties > Compatibility , and set them to run as Administrator and in Windows 7 Compatibility Mode . 2. Enabling DLC Content