I'd put the Settler down by the cows and fur. Extra happiness early on is never a bad thing. Plus I'm sure we could use the extra commerce from those furs to fuel our research. True, its not a great site long term, but the short term benefits IMHO would be worth it.
Edit: On second thought, it looks like there won't be enough food to work the furs. Bummer. This sure is a food poor map!
Is that a bug? An extra +2 health to go along with -2 happiness? That doesn't make any sense unless the health is permanent.
I would vote for the capital, as well, for the Pyramids. But why would the GE points get overridden? I'm probably missing something somewhere ... As long as we don't build any non-GE wonders in the city until we have our 2 GE's, I would think it would be OK.
With 6 continents, I would have expected it to be an isolated start. And since our variant requires us to circumnavigate the globe, it gives us an extra incentive to get some Caravels in the water and meet those other civs!