Re: the first hero should have been in fable 2
But if you listened to Theresa on her babbling when you take the quest to first go there, the town of Oakvale was destroyed 150 years AFTER the original destruction of it by Jack of Blades in his search for the Hero's family. Says it again on a loading screen, too I believe.
At 150 years later, the Hero would hardly still be a "lad" he was an old fogey lookin fella by the end of Fable if you buffed him up enough. And I don't think he died either, just went into hiding after he beat the stuffing out of JoB.