This is still possible in Colonisation when you take over an AI colony. I dont think it was ever possible to take over a native/barbarian settlement.
Actually, in Civ4, you *can* take over barbarian cities, and sometimes the "goody huts" that represent small independent civilizations will turn into a full-fledged city.
In Civ4Col, as in the original colonization, native villages can never be "captured" as such. Though of course, once you raze them there is nothing stopping you from building a city immediately on the same square.
What would it mean to "capture" a native city? Logically, you wouldn't have any buildings as such, since the native peoples didn't build the same sort of structures that the Europeans did, and in fact didn't have the same concept of division of labour that gives us all the varied professions (and hence buildings) available in Civ4Col. Would it mean keeping some of the native village's population? Frankly, I rarely see native villages larger than 3 population, and most seem to be set at one population.
So I'm really wondering what would be the advantage of "capturing" a native village? Keeping some of their inventory of tobacco, cotton and so on? As things stand, you automatically get one converted native in the destroyed village square, and that converted native can immediately found a new city there, if that's what you want. I like that better, in fact, than getting the city automatically, because having the converted native allows me to decide on the exact location of a new city, often a square or two (or more) away from the destroyed village location, or if I prefer I can just repatriate the new converted native to one of my existing cities, or send him to a university for education.
So I guess I just don't see the potential added value. Explain it, eh?
Cheers, --- Wheldrake