I had a lot of faith this bug would be resolved in the patch released last weekend but it was all for not.  It seems that the game developer has chosen to fix several other bugs in the game.  It just seems the one that has ended the game for me isn't resolved.  It really sucks because I've completed almost every other quest in the game now.  I was planning on buying the new Fable 2 DLC but I'm not sure I will now.  I'm thinking I may get back into Fallout 3 instead.