Instructions
Look for glowing blue orbs that are labeled with gamertags. These orbs represent other players who are logged in to Xbox Live and the orbs will mimic the movements of the players they represent.
Highlight the orbs by pressing the left trigger and interact with them by pressing the ̶0;A̶1; button.
Choose the ̶0;Gift̶1; option in order to give items or gold to another player. Once you have sent an item your game will automatically save. This is the only way to transfer items in Fable 2.
Invite another player to join your game as a mercenary by interacting with their orb or by inviting them from your Xbox Live friends menu. If they accept, you will then choose how to balance the share of gold and experience rewards between yourself and your mercenary. Although the default distribution rewards you and your henchman evenly, you can decide to give all the rewards to yourself or to your henchman or anywhere in-between.
Change the ̶0;Online Orbs̶1; setting from ̶0;Friends Only̶1; to ̶0;Everyone̶1; if you are having a hard time finding people to play or trade with.