In a particular game played with some mods, there was a city that was close to other cities, but even after it grew a level, it stayed stuck with no new buildings able to be built, even after I destroyed one. I'm pretty sure it is a problem with the base game, and not a mod. Anyway, I'll attach the save game file and the mod directory I used.
http://dl.dropbox.com/u/8710134/Stuck City.EleSav
http://dl.dropbox.com/u/8710134/Mods.7z
Best regards,
Steven.
PS: It is sometimes possible for a unit to appear two squares away when coming out of a city (and sometimes not). However I don't mind whether this one is fixed soon, if it is, in fact, a bug. 
