I can assure you that it has enough culture for 4 expansions. I think there is some problem with island cities expanding borders over water, because I see some ancient AI cities that haven't expanded beyond the first one also. This could be a feature and not a bug, however.
In fact, in CivIII all those eight tiles would have been inside your borders even if the cities had an influence of 2, so this is definately a new feature or a bug.
My 'refined' cities north and south could not absorb these tiles and the AI managed to find a way to settle there. I wonder how many turns it will take me to culturally absorb it.
That's what it looks like. I think though that if the next tile is land, as here, then culture should continue. The AI never made a city on that spot, so I have a free worker if relations break down with that civ.
If a tile is surrounded on 3 sides by my culture, it should be mine, even if only a water tile. Perhaps, it should not count for score, but only for aesthetics.
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