Please describe the exact method by which you are trying to run the game, including any and all commands entered in DOSBox.

Edit: The error makes me think that you're either trying to drag-n-drop the game's EXE file onto DOSBox, or maybe you're trying to launch it from inside DOSBox but without using the CD command to go to the game's directory first.

mount c: c:\games
cd c:
cd Fable
dir *.exe
fable

doing it this way, the game will launch, but it won't make it through the beginning dialogue

increase cycles to 5000 or 6000 before starting the game

I increased it to 6000 and got to this sceen before the mouse wouldn't move and I couldn't select any of the options

I couldn't hear any indication that it froze but the my cursor would not change to that purple arrow.

Might try re-running the configuration program (if there is one - I haven't played this game) and/or reinstalling from inside of DOSBox to make sure that it's configured properly. Does the sound and music work?

The only sound I'm hearing is for the stream. I'm not hearing the dialogue that is going on or music

I don't believe there is a setup for this game. The only other exe that is in the folder is the dos/4gw one that errors

Edit: I'm going to try redownloading it to see if that fixes it. After reading another site. I found out that the nature noises are the only ones that are packaged with the download.