In my current save I am unable to capture enemy cities, even though I can fight and defeat the defenders. AI players, however, have been taking my towns left and right with no problem. I have also had a recurrence of the 'rivers going out to sea' bug in the same game. I will try and upload screenshots if requested.
Dxdiag: http://pastebin.com/Dkz1Pi78
debug.err: http://pastebin.com/R8nuqbkb