Since I played this Conquest extensively (and even focused on it during the beta-testing), I feel qualified to make some analysis:
1) Machine performance:
Not a big issue. I ran a 700MHz P3 until recently, and loading/IBT time is absolutely acceptable (clearly less than 10 minutes). There's not much trade, guess that's the reason.
2) Civs and difficulty levels:
The big problem here is (regardless of level) not
surviving, but
winning before one of the strong AI Civs (Byzantium, Abbassids, Turks; rarely Germany and Franks) hits the 30000VPs. Naturally, since by far most of those VPs are won by unit kill, the higher the level, the faster this will happen simply because of the # of units they can throw at each other. As a rule of thumb, on Regent no AI should win in time, on Monarch within the last 20 turns, Demigod around turn 160-170. So obviously, picking the level a certain Civ should be played is more depending on its chance to win in time, or to eliminate the leading AI Civ(s) before they'll win, than the start itself. Cordova, for example, starts with lots of Luxuries, nice lands, all resources nearby, a weak neighbor (Castille), but without a Relic and far away from the crucial Civs, it's pretty much impossible to succeed above Emperor.
There also is a lot of luck involved when playing one of the Catholic Civs: If the Fatimids or Byzantium razes Jerusalem, you can win this on Deity. If not, Emperor is pretty though already - the Abbassid will secure Jerusalem like Fort Knox; it's their capital, site of a King and the only VP location on the map...by the time a Catholic Civ usually can reach the Holy Lands with Knight forces, there are easily 15+ Defenders in Monarch already. In the LK series game with Franks on Demigod, there were something like
25 Swiss Mercennaries...
Possible levels, at least IMHO:
- Sid:
England (if you don't mind a "minor" exploit"), noone otherwise
- Deity:
Danes, Norway.
Turks: They have an ugly start, but the Sipahi is the über-unit here, and they are close enough to the real competitors. And they have the IMO best traits for the high levels, MIL/COM. Possibly:
Sweden, though it can turn out in a complete
, if your fellow Vikings (attacking them would be suicidal) block the way out of the Baltic Sea for the first 50 turns. Did happen to me 
Franks, Germans: Jerusalem problem.
- Demigod:
Abbassids, Sweden, Germany, Franks. Most likely England (one of the very few Civs I didn't play so far).
- Pretty tough or frustrating even on Demigod:
Cordova - too far away.
Burgundy, Kievan Rus, Byzantium: the corruption will kill you. City placement was obviously done with the old corruption model, and the FP comes rather late. Especially Byzantium is frustrating on the higher levels, while being a cakewalk on Regent/ Monarch (that's the reason why AI Byzantium does so well). The closest cities in productive terrain will have about 50% corruption with a Courthouse(!) on Demigod...
Burgundy also has no primary source of neither Iron or Horses; while it can settle Iron, there are simply no Horses that won't be claimed by someone else before. And you're sandwiched between Franks and Germans. Definitely a challenge, but could be doable.
Fatimids: Don't worry about other Civs for 100 turns, you will be busy fighting of hordes of 3/2/3 Barabrian Keshiks...see Burgundy.
3) Tactics/ exploits:
- Researching the other trees is clearly intentionally, min research time is only 40 turns. I see no reason why this shouldn't be allowed. Note those Techs can also be stolen.
- Relics: The AI won't aim directly for your Relics, that's a myth. Unless the AI Civ owning a relic has access to Jerusalem, it won't manage to return it - it will try, nevertheless. At some point, it will march a rather frightening stack of units containing the relic-carrier towards the Holy Lands, but by no means enough to take Jerusalem. However, don't lose your relic to the Abbassids during the siege of Jerusalem

However, if a Civ is running short of units, the Relic can travel anywhere, even as Settler escort. Also, it seems quite random if the AI picks up the Relic at all. Just wanted to point that out here already, to avoid clogging up every thread later.
- Exploit: Yes, there is. Initial Diplo, as always; but since you start with almost no gold, the costs for establishing an Embassy take care of that. More important: Who says he have to capture different cities for VPs? You can capture the same city over and over again....works great with London
. Pump it up to 12pop, gift it to Bulgars (no defenders during your turn!), capture it (no combat - no pop lost), gift it to the Magyars, capture it...you get the point? Giving away a city in order to retake it once later is a viable strategy for the Vikings (they can capture anything, but hold it against the English Army?), but not repeatedly.
I've made 2 mods with Castile and Celts as playable Civs, both are already running as SGs (and since the complete BA staff participates, I think they're worth it

).
If someone is interested, feel free to include them; I also have a Magyar mod.
In any case, I will participate, preferably with one of the more difficult Civs (Burgundy, or Deity Danes/Norway).