i'm of two minds about where to settle, both on the stone and in place are fantastic city sites, and i think that you're correct in assuming that scouting 1 SE of the settler before making the decision is defiantly the way to go (in fact posting just that screenie might be worth about a dozen pages or so more debate...). short term (after getting over the loss of 1 turn for moving onto the hill right?) the stone is the better site, with the immediate production bonus to help you get the capital off the ground, and the 4 clams fueling your whip for quite some time you'd be in pretty good shape. Long term, the bonus from the elephants, extra hill(s?) and land tiles in general will probably (almost certainly) pay off, but im too lazy to actually do the math to show what the full benefit could be.
tech wise, military is certainly far from a priority at this point. Barbs shouldn't be much to fear on an archipelago almost at all (at least in my relatively limited experience they aren't) and your enemies, if there are any near by will be easy to choke off, or better yet on a different land mass and require boats to get to. Sailing should be on your list of things to prioritize, not just for your UB, but for navy in general. Remember the tag line for the archipelago map type: Powerful navies not optional. beyond sailing (while important it doesn't necessarily need to be first) you should be looking to masonry (which means mining or mysticism) for the GLH, opening up your stone, and for access to Monotheism and the religion that goes with it.
finally, i would build a work boat to start, although what you follow it up with should depend on what you get researched and what else shows up in the BFC i would think that a second work boat followed by either your first settler or a worker will likely be the way things turn out, regardless of where you settle.
to close, you know what you're doing better than i do, i havn't updated to BTS or played beyond prince yet (granted i win about 70% and i'm probably ready to move up), but i know a good start when i see one, and i understand at least somewhat how to work from it (or the mistakes i make because of it). from what we can see this should work out well for you.
wow, that was rather verbose for my first ALC related post... i'll probably quietly go back to lurking for several months before posting again like i usually do on forums like this. several other people usually beat me to the punch anyways.
