Instructions
Navigate to any town in "Fable III," such as Bowerstone, Brightwall or Mourningwood.
Press "Down" on the directional pad on your Xbox 360 controller to turn the safety off on your weapons, letting you kill innocent civilians.
Press "X" to perform a melee attack, "B" to use a spell or "Y" to use a ranged weapon on any villager. When a villager is defeated, he drops experience orbs.
Defeat every person in the town. Each town has between 20 and 60 villagers that can be defeated. It takes a few in-game days for towns to repopulate after everyone is slaughtered.
Press down on the Xbox 360 directional pad to turn the safety back on when you are finished.