Ok... So Right before I built my second town, a brigand came in and took my first town.  (No tactical battle in towns? Come on!)

So bug 1.  The great exploit.  I got my second town for free because I didn't have any towns!

Now bug 2 is a little worse.  I took the town back (again, no tactical battle option?) only to find out I had permanently lost my resources to the same brigands who took the town.  Even moving troops onto those resources wouldn't give them back to me.

It also really messed up my kingdom border.