I've just completed the abbot quest and luckily I didn't get the glitch. The Fable 2 board on GameFAQs has a topic about the various glitches you can encounter... it seems like there's a lot of them that can screw up your game.
What's also pretty bad is that you can only have one save file, so it's not like you can load an earlier save if something goes wrong.
In spite of knowing that, I'm enjoying the game a lot. It's very similar to the first Fable and there's several references to the first game (some obvious, some not so obvious). The "jobs" you character can take on to make money are actually quite fun; I'm trying to see how much of a multiplier I can build. Combat is better than the first game but I'm still trying to figure out if you can assign certain object to the d-pad (like trophies, potions, etc). There doesn't seem to be anything about that in the manual.