You need a full set of source files to compile. There are plenty of modern games where the game loads all dll files from each mod and use them to extend the code. Civ4 doesn't do that. Instead it shipped with one DLL file. If you add a DLL file to your mod, the game will use that file instead. This means your modded DLL file has to include everything vanilla has in the DLL even if you only plan to mod a single line. I think this is the main reason why all mods keep a full source code.
As for the license, I can't remember offhand, but it's not like it's a restrictive license if you plan on an unpaid hobby project.