It doesn't have good fighting mechanics like you want, but Morrowind is a superb RPG, easily my favorite. I've heard that the Gothic games are similar.
Oblivion is the next Elder Scrolls game after Morrowind, but it's more like an action game with stats than an RPG with fighting, if you get what I mean. Still a great game, IMO. I still need to get Shivering Isles....
I tried Fable on the Xbox, but I think my disc was defective. Haven't bought it for the PC, but you might want to try it. It is short, though.
Star Wars: Knights of the Old Republic is an excellent game, especially if you like the Star Wars universe at all. You might want to hold out on buying the sequel, The Sith Lords, until Gizka releases the more complete version (LucasArts had Obsidian rush the first one and oh boy is it apparent). Dunno when it's going to be released, though... it's already been a long time. Supposedly it's close to completion, although it still won't be a 100% complete game. Close enough, and much better than the original release.
Though I haven't played it, I recommend getting The Elder Scrolls: Arena, the first The Elder Scrolls game. It's a free download off Bethesda's site. You'll need to download DOSBox to run it, since the game was released for DOS. I have yet to do this. Don't be expecting combat even as "good" as Morrowind's, though.
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