Brought you a screenshot as always: http://imageshack.us/f/840/screenshot10x.png/

As you might see, the AI player (Gilden) is looking at My town (Ythril).
They are staring intently at it and have been doing so for 10 turns at that exact spot,
it would seem to be that since I grabbed this town from blue (Resoln) which outpost are between my city and his army,
he could keep that outpost, me ignoring the outpost doing no harm,
and I having trouble with 3 wars went on to do something else with my army when Gilden "ambushed" me from this new angle.
But he was stopped dead sinced he ain't too happy about razing his allies outposts,
atleast the AI should be able to move around this tiny bit of wood.

Sincerely
~ Kongdej