Have this same problem in the current and previous Beta versions at 1440x900 and other resolutions I tried as a fix. It's a pretty frustrating bug since I don't know alternate way of getting rid of the "found a kingdom" box. Trying to start a city pretty much ends the game for me since I can't get rid of the box, and I need to end the process to escape.
All I want for Christmas is for this to be fixed in the version I play on release day.