Noticed something odd in my most recent game.  The AI settlement of Queenshand (behind the arc of mountains) has a outpost underneath a settlement.  The outpost was built first, then a few turns later a settlement was built on the same tile.  The area of influence then decreased (since an outpost has 2 tiles influence and a city only starts with 1).  The outpost can still be selected under the city.

I stupidly opened the game again so there's no debug, but here's the save file for it.  The issue is with the city I mentioned above (Queenshand):

http://dl.dropbox.com/u/6617098/Outpostbug.EleSav