Dude you are confusing me. I'm sorry, but you might have to reinstall the game. Because you shouldn't even have two Levels folders to begin with. And if one of them is in your Defs folder, you screwed something up. So my advice now is to reinstall the entire game, use this to get FreeRoam properly installed, and go from there.
Well do what you need to do, man. If you reinstalled Fable and followed AlbionKnight's guide to setting up FreeRoam, you shouldn't have any problems. I'm still not sure what it is you're trying to do, though.
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