Hi,
After 2 hours of Civ4 debugging I got multiplayer working with version 1.61! I started from exactly same problem, login did not do anything but halted for a second.
I would say the problem solving falls in two categories in this order:
1) Connectivity (firewall) issue resolving
2) GameSpy account resolving
Firewalls and port configurations are discussed widely around the forum. I disabled Windows firewall, configured Norton carefully to allow all UDP 2056 traffic and other TCP traffic (just in case) specified by gamespy. I also checked my ADSL router is not blocking any traffic. All set!
Next I set on debug logging in Civilization 4 ini file to:
; Enable synchronization logging
SynchLog = 1
; Enable the logging system
LoggingEnabled = 1
This allowed me to see in logs following entry:
ERR: The uniquenick provided is incorrect.
I googled it to do with GameSpy. Now I new connection works just fine! My girlfriend (civ fanatic!) had created an account earlier today in
www.gamespyid.com which I tried. Did not work. I also tried one older account. No luck. After some searching I found a post (thanks!) about a solution: no account created OUTSIDE the Civ4 game will work. I guess Civ4 account creation provides some data normal
www.gamespyid.com registration does not. Ok, I went and created another account now INSIDE Civ4 which worked with no problems and I found myself in multiplayer lobby! Tested once that login also now worked. Debug off and to play!
I hope I have been able to give you some ideas.