On my machine, there are 3 things wrong with the attached save game.

1:  Next to the city of Polapel, stand the old king & his two brats.  They were there when I conquered it, and have been standing there ever since. Right after I took the place I tried to attack him but it wouldn't let me -- thats the issue.  Looks like it thinks they are in my city or something.   (In case it matters, Polapel had been taken by another faction recently, then I took it from the other faction).  The kids grew up while daddy was standing there.

2:  In the city of Nestimm, which I just took this turn, a hero named Cuenessa is stacked with my army, but she isn't mine.  When I try to talk to her (hoping to recruit her) I end up in negotiations with the hostile king.  Exiting & reloading did not help.

3:  Manual battles seem to be disabled.  Auto only, no matter how many units on each side, even though my threshold is "0".  It happened earlier, toggling the threshold between 0 & 1 didn't help.  Exiting and reloading helped for one or two combats, but now it is back.

save game at     http://dl.dropbox.com/u/8928343/QuickSave-2010-08-A.EleSav

debug.err   at     http://dl.dropbox.com/u/8928343/debug-2010-08-a.err          just after capturing Nestim

debug.err           http://pastebin.ca/1913305                just after reloading the save-game

(no crash zip file, because it didn't crash)

xp sp3, 32-bit, 3gb ram,  ati 5670 515mb with current drivers.  And no, it doesn't seem like the famed out-of-memory error.  I've never gotten one of those, and Elemental's mem usage never gets more than about 1gb.  CPU seems suspicious though, about 50% even when nothing is happening.