You'll have to wait if you want your physical farts to translate into an action in Fable III, according to Lionhead Studios head honcho Peter Molyneux. The designer has confirmed with Joystiq that the third game in the RPG series will not launch with Kinect support. It will be added in later, perhaps, as the studio polishes up said support.
Molyneux explained that its Kinect component wasn't up to the quality that Lionhead needed it to be at, thus the delay. He yet again didn't specify what we'll be able to do with the hands-free controls, leaving us with no concrete impression on what's actually causing the hold-up.
Joystiq spoke with Microsoft PR on the matter, and it confirmed that it can't talk about the Kinect stuff in the game. For now, we'll have to continue to wonder if physical-to-digital farting is truly possible.