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Fable 3 Mistpeak Monorail - Derailed
Immediately after the "Leaders and Followers" quest, you'll be directed to the Mistpeak monorail station to meet up with Sir Walter. Walter has a lead on more allies for your cause, but they are currently stationed in the far off region of Mourningwood. The monorail should cut your travel time down significantly.
When you arrive you'll find Walter waiting for you on a bench. Approach him and you'll share a conversation while the monorail car pulls into the station. Something quickly goes awry, however, as an explosion sends the monorail car careening to the cavern floor below, spelling doom for the passengers inside. Together with Walter you rush to the elevator that descends into The Hole, the aptly-titled cavernous pit the car tumbled into.
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Fable 3 Mistpeak Monorail - The Hole
Follow the trusty golden trail of light and you'll soon find the demolished monorail, as well as some unwelcome cave dwellers. Hobbes, squat little gremlin-like creatures, have surrounded the monorail car. Fighting the Hobbes is easy enough, just continue using the same strategies you've utilized previously. Roll to dodge melee attacks, charge up Fireball spells to singe the little buggers and finish them off with melee or firearm attacks. Slow Time potions are a godsend when you are overwhelmed by a crowd of enemies at once, so use one if necessary.
Proceed through The Hole by following the quest trail, eventually coming upon some inconspicuous barrels. Unsurprisingly some Hobbes pop out to ambush you; destroy them and move on. You will travel a path near a ravine with enemy Hobbes lining the opposite side. Fortunately, they lacked the foresight to move away from the explosive red barrels nearby, so punish their ignorance by shooting the barrels from afar and setting them ablaze.
A little ways forward you'll discover the Hobbes' newest innovation: magic. A wizardly Hobbe will construct an arcane barrier that you cannot pass through. Walter recommends trying to find an alternate path. Head to the right to swim around to the magic-wielding Hobbe and decimate him and his comrades. The barrier will drop and Walter will rejoin you.
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Fable 3 Mistpeak Monorail - The Arena
The next destination of interest is a circular arena ring the Hobbes have infested. As soon as you enter, a trio of magical Hobbes will summon a horde of skeletal Hobbes to impede your progress. They will also protect themselves with a magical barrier. The undead Hobbes aren't difficult to kill and once they are dead the barrier will drop and you can bash in the skulls of the magical Hobbes. After your victory a portal will open to bring you to the Road to Rule.
One of the best upgrades in Fable 3 is available now: spell weaving. Purchase it if you have enough Guild Seals, as this fantastic ability allows you to combine the effects of two spell gauntlets at once. Experiment to find a combination you prefer, though we highly recommend Fireball and Ice Storm for now. The Entrepreneur Pack is now also accessible and is a great way to earn piles of gold as it allows you to purchase and run shops. Take the Cullis Gate exit when you are ready.
You're back in the Hobbe arena and Walter is about to use his own special brand of magic to dispose of the final wizardly Hobbe blocking your path. With a terrifying "Boo!" he gives the poor fellow a heart attack, eliminating the barrier and allowing you to continue your journey. Before you leave and end the quest you may want to nab the Technician's Key in a chest by the exit; with this key you can backtrack to a locked door by the wrecked monorail and open it. Inside is a Silver Key and other assorted baubles.