My favorites have been: LEGO Star Wars, Drake's Fortune, MGS4, Ratchet & Clank: Future, and Oblivion.
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Go with Folklore.
Word of warning: I didn't like it(I love RPGs like Morrowind/Zelda/Everquest) and my brother didn't like it(He loves RPGs like Final Fantasy/Dragon Quest/Baten Kaitos). So just a caution, you may want to rent or borrow before buying.
IMO, the levels are broken up into lots of small zones and are extremely limiting(You can only run on the paths), so lots of load times which sucks. It's extremely repetitive having to run through the same zones all the time, you can't skip the dialog, and there are save points you have to get to to save the game. Oblivion has a nice open world, unless you enter a city or a dungeon, there are no zones(Or they are seamless) and you can fast travel(Except within dungeons) rather than having to rerun the same stretch over and over. You can skip the dialog and you can save the game at any point and time. That's not to say Oblivion is without flaws, you'll need to save often as the game does freeze up on occasion and there are some bugs(I love the duping bug
). I can't comment on the stories, because I don't play these games for story. That's just my $.02, you may love Folklore or you may love Oblivion or maybe you'd love both, for my money Oblivion is tops.
Also, LEGO Indiana Jones isn't as good as the LEGO Star Wars game, again that's my opinion.
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http://www.imdb.com/user/ur3140151/ratings = My Movie Vote History