[Drakul]

Saw this mentioned on the Lionhead Forums. Seems our clothing morphs as well.

Originally Posted by 1UP 1UP: So while there's been a lot of talk about how weapons will grow and change based on how they're used, but what about armor? Will that just be more static, or can it grow and evolve based on what types of damage you take with it? JA: [As mentioned earlier], your hero clearly changes and morphs based on how you have played the game, which will also impact how your clothes look. For example as you get more powerful you'll see your clothes glow and change colour depending on the moral choices you have made. However what you wear, and how you dye, is also a big part of the customization process, and overall, we want the player to retain the control of what they look like. There are some aspects of the game where your actions will influence your hero's appearance, but Fable is known for player customization and that is something we're very proud to continue in Fable 3.