Yea so, bear with me here. I know you can build a refugee camp in .806, I've done it too. Heres the scenario.

I realized that because level 2 cities are only population controled, if I just built my city next to a refugee camp, and built one, I wouldnt have to deal with building a farm, as I could build skathling pits at level 2. Consequently, thats what I did. Unfortunately, the game disagrees. I have the 50 tools, and the refugee camp surrounded on one corner, and two side lines. I'll go back to my save game try again, but the icon to build the camp is lit up, I can select it, the only problem is the refugee camp build spot is not recognized (i.e. no green box where the refugee camp would be built.)

Screen:http://screencast.com/t/OTVhZTAxYTk

note: I know you cant see my curser, but I promise you, the refugee camp is selected, and my curser is frantically clicking on the refugee camp spot.

I tried to upload the debug.err to pastebin, but apparently its too big. Ill save it, and if whoever reads this (or not) wants it, i can throw it up somewhere you direct.

cheers,

Edit: Yea as vaul below me says, I apparently cant build one even after I hit level 2 city. It might be notable that I am using empire, not kingdom. I have been able to build Refugee camps with Kingdoms with .806.