The menu system in Fable 3 has been getting a lot of attention because of how different it is than conventional games but may I point you to another excellent game, which is actually quite old and had an almost identical menu system.
As you can see there is a room with three other doors leading to different areas. Whenever you've decided what you want to wear, just select which room to go to and you'll have what you need.
Anyway, this is just something I wanted to point out. Fable 3's system seems almost identical, except instead of switching rooms like you do in Terranigma, you just walk to a different part of the one room in Fable 3. The one in Terranigma works flawlessly and from what I've seen the one in Fable 3 does too.
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