So I restarted Elemental and a new game. The second Lord Capitar was missing and all five Sov's had an avatar pic whereas normally three or four of them are a white disc.
I tried the same thing as before, endlessly pressing space, but after four hundred turns or so, there was no victory and I saw only one NPC the whole time, an NPC hero stack.
I had about five children come of age and discovered that when you own no cities, they stack with the Sovereign instead. Not just your starting location either, they stack wherever your Sov stands.
So after about 400 turns I was satisfied that nothing was going to happen so I had the kids fan out and auto-explore, clicking ok whenever they landed on goodies, and clicking retreat whenever they came across enemies, never arming anything they picked up. After over 1000 turns I had encountered both opposing Sovereigns, but was certain that neither had built a city.
NPC Sovereigns seem to wait until you've built your first city before they build theirs.
So I built one city and tried to see if they had built any but within a dozen turns, the game crashed.
Dropbox of error log: http://dl.dropbox.com/u/5321787/Elemental0_295-2010-03-13T03-20-06-841.zip
dxdiag: http://pastebin.com/eVqrHCPN
The game seems to be endlessly stable if you don't enter combat, don't use items, and don't build cities (which also means no research, no building/training, and possibly no NPC's doing the same).