Cities leveling up with some advanced housing seem some kind of Achiles Talon for the game. When one ofmy cities level up, it became like this:

I had lost houses (common bug that not always happens) and the borders where totally nuts. That same turn I destroyed the watchtower but it didn't make any difference. I ordered to build some houses and the borders fixed themselves apparently.
I made a separate save of that situation before ordering those new houses. But if I load it, the situation of the borders is different (still wrong though):

Saved game:
http://dl.dropbox.com/u/4996295/lele03.EleSav