Well I have to say you made a mistake with the no raze patch. When properly applied the AI cannot raze in fact when the human player captures a city the pop-up that gives you the choice to either raze or keep the city does not even come up and you have to keep the city yourself. Although I have to wonder why you would place cities so close together impeding their growth and shield production.
pretty sure that I installed the correct one.
icon. click "rename" and "copy" and then add on the "ORIG" suffix to it (ie your backup). find the patch in the TCW Fifties folder that corresponds w/ the version you're running and then right click that file, hit "rename" and then "paste". lastly, "cut" that file and paste it into the Civilization III/Conquests folder.
reason the AI is still able to Raze Cities.
it's semantics though
on a sidenote, i've never seen the AI "abandon" a city w/ the patch in place.