In civ 2, the palace building of civ 1 is the throne room, and it hasn´t nothing to do with the game or points, you can chose to tueno off the option and u will never heard again about it. I got almost forgetted about the palace or throne room.
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That's strange. I have Civilization II - Test of Time that had among other interesting campaigns the original Civilization II campaign and the Extended original Civ2 campaign, but I there is nothing about palace improvement, only a simple palace in the capital city that removes financial corruption...
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Well, for your version thare isn´t any other palace and i am sure that u got the throne room option turned off. Maybe it didn´t came with your game, the versions on the net most of them didn´t got some of the additional stuff like the throne room additions, the wonder´s movies, the loser´s movie, etc.
And Civ2 hasn´t campaign, there are scenarios or full game modes. Anyway when you found your first city, it got a capital palace, the palace is from where u rule your empire and in a capital the corruption is always 0. The distance to capital generete a discontent and corruption factor depending on the goverment. Big sized empires with depotism or monarchy have to change the goverment or move the palace to the centre of them. This is a very common problem in long scenarios with a high tecnologic paradigma (make each tecno more diificult to get), you must chose a warless republic or move palace.