The latest in Lionhead's Fable 2 video diary series has been released, this time focusing on the game's magic and co-op features. The co-op information is stuff we've all heard before (sorry, no Live co-op confirmation here), but there is a snippet or two about exactly how the magic system melds with the one button combat system. Basically, rather than pulling up a spell menu to cast spells, spells are chosen based off of how long the button is pressed and other factors. For instance, if a player casts a spell while pointing the left stick at an enemy, then a ranged spell will be cast. If the left stick is left neutral while pressing the button, then the game will instead select an area effect spell that emanates from the character outward. How exactly a player controls which spell is cast (fire, lightning, etc.) isn't made clear, although there is a mention of players setting up spells ahead of time.

The rest of the video focuses on Peter Molyneux's presence at GDC and the public debut of Fable 2's couch co-op. Keep an eye out for a special guest appearance by CliffyB and even a shot of Major Nelson. Hopefully next time we can actually see some footage of the magic in action.