I haven't heard anything about uploading your Fable II Hero to Fable III, but for example:
if your last save on Fable II was your male Hero, when you play Fable III people will mention 'the old Hero King', and if your last save was on your female character, people will mention 'the old Hero Queen'
I'm not sure if your actions in Fable II are making a difference in your Fable II world though. I haven't noticed any differences yet.