OK Goz, since you're not going to play until later today you've given me some time to ramble on with some more of my opinions. Here goes...
Normally, I don't think anything good comes out of making DoF's, except sometimes you can pull some shenanigans on an AI you've locked into not declaring you. We've got three fairly close ones (I'm guessing about Ramesses), and now two of them can't really declare on us. So why don't we spread out a little while we can? If we politely give those sites to the computer, like the gentlemen we are, then they use that land to produce units we have to fight later. If we take it.. well, you get the picture.
My input for future turns wold be something like this:
Research: We should go with Archery first if we think we can peacefully make it to Education. If we don't believe that then we should move for Chivalry and settle next to those horses immediately or Iron Working and start spamming warriors. Next (assuming the peaceful route) would be Masonry, Calendar, Theology and Education.
My personal preference would be to get to Chivalry and build the horses, upgrade to elephants, and move to Education feeling a little safer. There's a risk of missing the OP wonders doing this but I have a feeling relations are going to sour when those DoF wear off and we've got 4 early settlements, the Great Library, and some covet-worthy land.
Capital build: settler, settler, archer, archer/monument (did we build that yet?), archer/monument.
2nd city build: monument (already in progress), archer, worker, library.
3rd city build: monument/worker, monument/worker, archer library.
4th city build: monument, library.
After we get the four cities down, the capital can work on the NC and everybody else can do temples or units, depending on how dangerous it gets. I have a guess which one it'll be, but we'll wait and see.
Settling order: The tile that our warrior is fortified on is as good a place as any. It's on a hill, has sheep and cows in the second ring (another cow in the third), marble in the second ring, two granary resources and, eventually, two sugars. It keeps Gandhi out of our area (do we really want him planting a city next to our capital?) and saves room for at least two more cities after we've done our Wat thing. It's hard to tell whether Gandhi or Ramesses is going to beat us to where we want to settle, but my bet is on Gandhi. I'd prefer to go east first, but if there's going to be long delays building our first four cities, we should probably get the horses first.
Personally, I don't think we're going to have enough time to build all the workers, units, and prerequisite buildings for Wats in the time it's going to take us to get through Education. The sooner we get the cities down the sooner we can get working on it. Not ICS, REX. The only question I would have is whether I wanted to research Theology right away or work on getting closer to a better defensive tech, which brings me back to the Chivalry point one last time (I promise).
If there's any doubt that one of the AI is going to attack us it might be better to consider a slightly different approach than the straight run to Education. I always prioritize Education but seldom rush it on harder difficulties, because I don't have the patience or skill to suffer through the 100 turn bum-rush that comes when your military looks weak. We could either: A) Change those archer builds to warriors and research Iron Working, or B) make a beeline to our elephant UU (and change some of the archer builds to chariot archers). If we need stronger units to protect ourselves, they should probably be units that we can upgrade into. Pikeman cost 90 hammers to build, which is ridiculous. We can still spam warriors for swords, and if we stop selling our horses, we can build chariot archers and horsemen for the elephants. The detour to Iron Working would take less time, but it's more uncertain. In either case, I don't think we should change our settling strategy. Earlier is better.