Admittedly, I haven't played extremely far into a game. I may have played one game into the ADs. In the other games, I was toying with this strategy for spreading out my civ quickly...
I've only played as the Americans, so the expanionist trait may be why this seems to have worked.
I settle my first city near a shielded grassland. I have my worker (again, maybe just an expanionist starting bonus) build a mine and a road on the shielded grassland. I'll do this for three grasslands or so since there isn't much else for the worker to do.
The first thing I build is a warrior. Then, and I never did this so early in civ2, a granary. Barring bonus wheat, the granary finishes right about the time my city reaches size 3. Then, I build my first settler and a second.
Thanks to the granary and the mines, this city (my capitol) has now become a settler factory.
I treat the settled cities a little differently. I have my settler factory at work, so I don't have to worry about getting that settler out there. So, I build a temple instead of a granary for cultural purposes. I don't bother with a temple in the capitol right away because the palace helps.
I can't wait unitl my F-15 fighter shows up.