The only game I can think of that would be even close is Fable. It's almost as if you mixed up Oblivion and Fable together. The only thing missing is the gingerbread house, which, I have no clue.
Looks like this will be forever forgotten. My only suggestion would be to look at PC games year by year as far back as 2003.
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EDIT: Solved, thanks for all of the help. The game is Simon the Sorcerer 3D.
I played a game on PC back in around 2006 or something around there and I played a game at my friends house. I've asked this question before and I got the answer but it's gone from my mind again.
I remember from the previous answer I think that the game had the name 'Adam' in it.
The game starts you are in a cell or something and you get out and you're inside like a fairytale world, the main thing I remember is Hansel & Gretel, or something like that, there was a house which was made of gingerbread and at one point I remember following a trail of something to somewhere, I don't really remember it being a big world. There was a big castle, the cell you break out of I believe was in the cellar of the castle, most of the land I remember being bright green grass.
The name might not be Adam, it might not even have a name in the title. I played it in around 2006 but it could have been released a lot earlier.
I know I haven't given much to go on but I know a lot of you guys know your games, hope someone knows :D.
Thanks.
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