[.75] AI selection in placing a city - picture
By the way, it is almost impossible to take screen shot on Win 8 now, because Win key works as 'next city' button ...
Here it is how AI places two of its cities (not to mention that north of this spot there were excellent spots available - like 10 tiles north). Problem is that they sandwitched my outpost between two cities. There you can see also the tower of witch as first building build in a new city (very strange)
https://dl.dropbox.com/u/16401819/error%20city.PNG