I believe that Akots suggestion of building a city on the horn is solid advice. I would caution, however, that we would probably need to begin work on a new settler (or two) in order to replace the one we use. I would also like more galleys, as it seems that our adversaries are building a lot of those.
I still believe that we can easily allow the movement of the AC's to iron island. They were left in Charnel for exactly that purpose. I agree with Akots 'feelings', 'assessment', whatever you wish to call it: that the galley is likely empty (although I would love to know the route that they took to get it there (and where in hell it took 1 hp of damage), however, better safe than sorry.
As for builds, although I have made suggestions to Rik (and will continue to do so...seeing as how I am expected to conduct a war) I have never insisted on any builds or worker orders. I have only ever suggested. The final say on movement of units was mine, the final say on builds/workers/city spots has always been Rik's.
ONE MORE THING:

Rik, if you have not played the turn yet, move the main fleet back only one square. It seems that C3B likes to be two away from our SC fleet and moving only 1 back might just put those units within striking distance if C3B follows us south.
YET STILL ANOTHER:

I recommend that you drop the settler onto the shielded grass square SE of the JT. If we choose to not build the city, we can always pick him up again. If we choose to build the city, we can do so immediately next turn. If you do drop him, make sure that you drop a pike with him (just in case C3B goes to take a look, it will look much more believable).
The reason for that particular spot for the city is that it would cut down our ship movement costs around the horn (as opposed to the spot where the JT is).