I'm not 100% on what Civ Rev 2 since the first game changed other than certain leaders and obviously the control interface, but to the best of my knowledge the games are mechanically the same so this should still apply regardless.
Defensive positioning for cities rarely factors. I hardly even build units outside of an initial 3-6 warriors for exploring/taking huts until Tanks in most of my Deity games, unless I specifically plan on horserushing. It's also important to note that defensive units (warriors included) that defend outside cities eventually erect fortifications after 3 turns, which is the same as the Wall bonus, and you don't have to build it, so it's actually better to claim any important defensive tiles if you ever really needed to (you don't) with units instead. It's far more important to spend as much hammers/gold on settlers for more cities as you can than anything else, until you have enough for a decent trade influx. More cities is more science = earlier techs = more 1st research bonuses, more cities is more gold = more unit rushing for any purpose such as more expansion, attacking with a rush, emergency defense, etc. The fact that AIs are quite timid and cannot walk through borders or your units is more than enough buffer to buy you time to do everything you need to do to secure victory in the first 25-40 turns of any game on Deity. If you get aggressive with horses, it can be even faster; the game could be over by turn 40 with a successful horse rush, earlier if you find all your opponents fast and mobilize quickly. But if you are fast enough with getting simple warrior units out and cities settled, you can just gimp them by containing them and not allowing them to explore or expand anywhere in any game (except on isolated island starts).
The most important consideration for any city settling location is that it can work at least 2 water tiles at the bare minimum, or the equivalent (such as desert for egypt, spice desert tile + regular desert tile for anybody, etc.). A city that works at least 4 trade always pays for itself in terms of turns required to build a settler out of a two tree city, or to grow to the next size by working less water. Water tiles are everywhere and provide 2 trade each, and every city starts off at at least 2 pop, so simply 2 water tiles = good enough. The reason such a minimal approach works is because there is no detriment whatsoever to having as many cities as possible in Civ Rev, in fact you want more at all times because more cities = more everything, and when you have as many cities on the map as you can fit, as close as only 2 tiles away from each other, working only 2 water each is plenty. When you have 15 or 20 cities by 1000AD working 2 water or more each, that's at least 60-80 raw science coming through a turn by doing nothing more than expanding. And it can easily be much more than that if you can get cities to grow with a resource, earn the first research bonuses for Literacy and University, are in Democracy, and continue to settle cities in later eras where they start with more population to begin with. You never even have to bother with buildings, they'll only slow your expansion and research rate unless you're already working all available trade tiles.
If the city can also grow, great! I always make a habit of trying to settle any city I can with at least one 2 food tile (grassland, or something like a fish tile) along with the 2+ water tiles (or equivalent). Having the city work just this single +2 food tile will have it steadily grow if it has more than 2 water tiles to work, and slightly bigger cities are also nice for settler rushing. It is never strictly necessary to grow except in very specific circumstances though, and mathematically it's exactly the same to just keep working water tiles and never grow in a typical spot (your capitol and other, better settled spots can pump settlers for you, or you can simply gold rush them), so it's not really something that should be done unless you have access to a food resource to grow faster than the normal rate (Cattle, Wheat) or while you tech at the same time (fish/whale). Obviously this makes Japan's bonus very appealing, but it's not THAT powerful in the long run if you mass expand everywhere with any other civ.
Other spots to consider are "settler farm" spots. These city locations have at least 2 trees and either one or two +2 food tiles (typically a grassland). These cities don't need to have access to trade necessary: all they do is grow to settler building size (3 normally, 2 with Code of Laws which you should ALWAYS beeline for unless horserushing) and crank a settler, then regrow and repeat until all spots are settled. These "settler farms" are not strictly necessary (gold rushing settlers is always the first option, and any city can eventually slow build a settler if it can grow at all) and are only a priority if you can't get the gold to kick off expansion quickly; it's always better to settle more 2-water-tile spots. But they do help you constantly pump settlers, especially if you have a lot of terrain or multiple directions to settle in. If you have room for say, 20-30 cities up and down your coasts, it can help to have 1 or 2 inland settler farms doing nothing but pumping them to help speed it up.
If you are going for a horseman rush, the only real consideration is that any further cities you settle have at least two trees; if they also have access to water so the backwater cities can work gold for your more enemy-proximate cities to get their horses out faster, that's great too, since such an attack is an ongoing thing and anything you can do to eliminate turns, whether putting together horsemen armies faster with some gold to rush or saving on travel time to the enemy, significantly improves its success rate. The capitol's starting location will always have 2 trees, 2 grassland, and 2 water, which is enough to get you HBR and your first couple horses, but you'll want at least 1, preferably 2 more cities for an effective rush that can end the game.
Resources are usually not a big consideration unless they are unlockable quite early in the game and help either tech or growth.. Fish is always good for instance, as it does both and is only at Bronze Working. Whale is also very good, simply because of how powerful it is in growing cities that have multiple water tiles to work in a very short time, and Navigation isn't out of the question to take after CoL is done. Whale is even better for the Spanish since they can use it immediately. Dye is good to look for if you play England to get it immediately; otherwise it just comes in time eventually to increase your science income later and often improves island cities. Spice is good for anybody as it gives you a tile 50% better than a water tile and require no tech. Outlier resources are Cattle and Oxen: you'll unlock cattle anyway in a typical CoL beeline game, and it does give a lot of food on one tile for fast growth, but it needs to be near water tiles for this to really matter. Oxen (unlocked by Horseback Riding) is great for settler farms, as it allows growth and storing hammers at the same time for a very quick to unlock tech which you might open with anyway in more aggressive games or on more isolated starts. The rest are not really worth bothering with as you should be well on your way down the line into mass city expansion by the time you get the techs to unlock them.
One last consideration for a city, just a personal one for me, is to look for at least one (multiple would be better, but rare on typical maps and it takes a tone of gold if rush building infrastructure for multiple cities) spot with a decent amount of total food tiles (at least +10 overall) and then as many mountain tiles, hill tiles, and tree tiles, in that order of preference, inside its courthouse range as possible. Resources like Iron and Oak are also welcome for this city spot, which normally don't matter. This city has one function and one only: grow as big as possible, as fast as possible to work all of its tiles, and get as much production as it can with the help of an Iron Mine, Workshop (if applicable) and Factory. A spot like this can easily get 50-60 hammers a turn, and if it has many mountains, as much as around 75-100, even 150+ in some cases. Aqueduct and a settled Great Humanitarian helps too, as well as a Granary if it has any plains tiles to work. Once it grows up to the point it can work all its hammer tiles and all of that is in place (which will take a significant chunk of the game), its one mission is to crank wonders in a few turns each: priority on East India Company (for the massive boost to coastal trade), Oxford University (mostly to deny the AI a quick path to Flight, which obsoletes EIC, but also can be used to grab Industrialization or Advanced Flight if you want) and Leonardo's Workshop (to turn your warriors into Knights/Tanks and your galleys/galleons into cruisers). This city type is entirely superfluous and will require either a long time to self-build its improvements while growing, or a ton of gold to rush them, but it's fun to do and is one of the best ways to go for a later cultural victory by snapping up all the remaining wonders for milestones. I usually get this city up and running by the time I get the +5 gold per city from Industrialization's 1st research bonus, and by that point I'm usually done with most continental expansion and just running settlers to island cities, so I have the gold to spare to rush its infrastructure and start on wonders.