I also went and downloaded the demo, and that game is alot like an advanced version of conquest of the new world (if only I could get my copy of that working) anywya I'm with you though Mr. C i'll take settlers over this anyday and in relation to your problem NetDanzr's strat explains it on the very first point

Yes, it does, but it also confirms what I suspected (and hinted at here): the computer players are complete crap, cheat at the beginning and then later just stop doing anything - that's the worst type of all.