I take it when you say that you will run out of improved tiles you're only talking about those that would increase production. Is farming out of the question at this point? I would think working food-rich tiles (eg. floodplain with a farm) would also work because food is added to hammers for settler and worker production.
In this case, farming is doesn't help. Farms without an extra food bonus under them are three yield tiles at this point in the game (farm a green tile for 3

, farm a brown tile for 2

+ 1

), which aren't significantly stronger than the forests which are already there (green forest 2

+ 1

, 1

+ 2

)
Farming floodplains, farming sugar (turning a 3

tile into a 4

tile), is roughly equivalent to mining a hill - 2 surplus yield instead of 1 for a forest.
Mind, that would still only be taking me from +9 to +11
So based on this, the crappier the starting position in terms of production, the sooner we need to look to founding the second city. So if we had more hills we could build more warriors while growing and them produce settlers and workers more quickly because of more hammers.
Yup.
Why is C not "serious play". I understand why A is better but it seems like a decent enough spot. I've definitely seen a lot worse and it would block your enemy. I also don't understand why the hills make a difference.
Not sure anymore what I was thinking about there. I may have meant to write "not seriously in play. The main problem with the hills here is the same that we had with the scout -- the hills cut the walking distance between here and the capital in half.
Given where the city is located, Market/Grocer is probably a better choice than Courthouse anyway, given the proximity to the capital.
Can you clarify the bolded statement above?
I get the idea with the proximity to the capital but I think I'm still a bit confused with the commerce vs gold issue. So if I have say 100

in one city and my slider is at 80% that means that 80

goes to

and 20 goes to

. So would building a market add a multiplier for that 20

?
Yes.
If I understand this correctly this would make it easier to pay city maintenance and may allow me to raise the slider? I just want to make sure I understand how this bit works.
Close enough for a player who's competing at Noble, so ignore what follows if it doesn't make sense yet; I'm perhaps being a bit to precise.
Your treasury is global; the wealth you generate in your cities contributes to your "income", and the city maintenance cost contribute to your "expenses". So adding a market in a city provides more overall income which may be used to pay your overall expenses (which also include things like the cost of supporting your military, or wealth/turn that you are trading away to the AI).
When your income exceeds your expenses, you have a number of options, including accumulating wealth for later use or raising the science slider to divert more commerce to science.