Thankyou for your kind replies.
a) It IS a fact that the AI does NOT abide by the rules, and that it `cheats`. That is a known in the computing fraternity and not disputed. Am surprised some dont know it?
The dispute here is about semantics. It has nothing to do with anyone not knowing anything. The word "cheat" could be applied to the bonuses the AI gets at higher difficulties, or it could be argued that those bonuses aren't "cheating," but the facts are unchanged either way.
In any case, whether those bonuses constitute "cheating" or not, at Warlord difficulty YOU have the bonuses, not the AI, so if it's "cheating" then you, not the AI, are the cheat.
c) I go for 3-4 cities by 1000 AD, (anymore and Im bankrupt), never drop below 70% research, grab a religion, and have one city building PROPHET producing wonders while (usually) my capital produces ENGINEER wonders. One of these is Pyramids.... then its POLICE STATE and Vassalage etc NON STOP to get an army that anihilates my weakest neighbour (which I have constantly repressed by doing border raids and capturing his workers - double edged sword that one) and yes Smidlee I know all about F9 and `power` rating, and ensuring I am superior to my target.
OK I see what your problem is.
1) 3-4 cities is too few. It's not true that you will go bankrupt if you build more. It's a question of horizontal versus vertical mobility. You can help your economy out by building lots of city improvements (especially farms and cottages, plus mines on gold/silver/gem resources), and by researching Code of Laws and building Courthouses, and researching Currency. I try to reach about 9-11 cities before I stop my peaceful expansion. If you have to drop your research slider for a while, that's not the end of the world. I've had it drop to 20% routinely at that stage of the game, but it comes back up pretty rapidly and I find it easy to catch up on research. And I play at Monarch. At Warlord it should be a cakewalk.
2) Getting a religion is good, but insisting on taking the one you found as your SR is not. If it spreads to your neighbors so they are all your religion, fine, keep it as your SR, but if something else makes better diplomatic sense, don't be a fanatic, switch faiths. You'll still get the shrine income, which is the real reason you want to found a religion (all other religious purposes are satisfied whether it's your religion or someone else's). Next to having a weenie little army, being an infidel is the best way to get DoW. With some AI leaders, it's actually the best, no exceptions.
3) You're building too many wonders IMO. You can sometimes pull that off at lower difficulty, especially if you're Industrious, but even when you can do it it's not that good an idea. I'm not saying build NO wonders, but trying to get them all is not wise. It means that you're putting a lot of hammers and time into wonder building that could instead go to developing your infrastructure and building a military. Pick and choose your wonders. In the Ancient/Classical/Medieval period, I would suggest picking no more than three, maybe four if you're Industrious. Don't even try for the others.
Of those, I'd say #2 is probably the culprit for the specific problem you described, maybe combined with lack of military units. Diplomacy is the key if you want to remain at peace, and choice of religions (plus careful use of "go to war with" bribes) is the key to diplomacy.