I used to be able to build things in my town, after a few turns, I was not able to build anything anymore - figured that might have been due to being surounded by forest etc., however, the building options were not simply grayed out like usual either.
Not thinking much of this I kept playing on, however, by now a newly conquered (and since razed) city was also not able to construct buildings, and a newly formed city cannot either.
Here is a debug.err: http://dl.dropbox.com/u/9164057/debug.err
Recent Savegame: http://dl.dropbox.com/u/9164057/lala.EleSav
Screenshot 1:
http://dl.dropbox.com/u/9164057/cant_build_1.jpg
Screenshot 2:
http://dl.dropbox.com/u/9164057/cant_build_2.jpg
Sorry, I have no save from before this happened.