diff -Nur -X/home/thue/freeciv-dev/no.freeciv freeciv/server/citytools.c transfer_city_bugs/server/citytools.c
--- freeciv/server/citytools.c	Sat Apr  8 14:29:46 2000
+++ transfer_city_bugs/server/citytools.c	Sat Apr  8 20:22:20 2000
@@ -693,23 +693,21 @@
  * there must be a similar function somewhere, I just can't find it.
  * 
  *                                - Kris Bubendorfer 
+ *
+ * returns NULL if no satisfactory city can be found.
  */
-
-struct city *find_closest_owned_city(struct player *pplayer, int x, int y)
+struct city *find_closest_owned_city(struct player *pplayer, int x, int y, int sea_required)
 {
-  int dist;
-  struct city *rcity = city_list_get(&pplayer->cities, 0);
-  
-  if(rcity){
-    dist = real_map_distance(x, y, rcity->x, rcity->y);
-    
-    city_list_iterate(pplayer->cities, pcity)
-      if (real_map_distance(x, y, pcity->x, pcity->y) < dist){
-	dist = real_map_distance(x, y, pcity->x, pcity->y);
-	rcity = pcity;
-      }      
-    city_list_iterate_end;
-  }  
+  int dist = -1;
+  struct city *rcity = NULL;
+  city_list_iterate(pplayer->cities, pcity)
+    if ((real_map_distance(x, y, pcity->x, pcity->y) < dist || dist == -1) && 
+	(!sea_required || is_terrain_near_tile(pcity->x, pcity->y, T_OCEAN))) {
+      dist = real_map_distance(x, y, pcity->x, pcity->y);
+      rcity = pcity;
+    }      
+  city_list_iterate_end;
+
   return rcity;
 }
 
@@ -974,7 +972,6 @@
   unit_list_iterate(pplayer->units, punit) 
     resolve_unit_stack(punit->x, punit->y, 0);
   unit_list_iterate_end;
-
 
   notify_player(0,
 		_("Game: The capture of %s's capital and the destruction "
diff -Nur -X/home/thue/freeciv-dev/no.freeciv freeciv/server/citytools.h transfer_city_bugs/server/citytools.h
--- freeciv/server/citytools.h	Sat Apr  8 14:29:46 2000
+++ transfer_city_bugs/server/citytools.h	Sat Apr  8 20:22:39 2000
@@ -65,7 +65,7 @@
 struct city *transfer_city(struct player *pplayer, struct player *cplayer,
 			   struct city *pcity, int kill_outside,
 			   int transfer_unit_verbose, int resolve_stack);
-struct city *find_closest_owned_city(struct player *pplayer, int x, int y);
+struct city *find_closest_owned_city(struct player *pplayer, int x, int y, int sea_required);
 
 void adjust_city_free_cost(int *num_free, int *this_cost);
 
diff -Nur -X/home/thue/freeciv-dev/no.freeciv freeciv/server/unitfunc.c transfer_city_bugs/server/unitfunc.c
--- freeciv/server/unitfunc.c	Sat Apr  8 14:29:47 2000
+++ transfer_city_bugs/server/unitfunc.c	Sat Apr  8 21:06:26 2000
@@ -1146,7 +1146,7 @@
       maybe_make_veteran (pdiplomat);
 
       /* being teleported costs all movement */
-      if (!teleport_unit_to_city (pdiplomat, spyhome, -1)) {
+      if (!teleport_unit_to_city (pdiplomat, spyhome, -1, 0)) {
 	send_unit_info (pplayer, pdiplomat);
 	freelog (LOG_NORMAL, "Bug in diplomat_escape: Spy can't teleport.");
 	return;
diff -Nur -X/home/thue/freeciv-dev/no.freeciv freeciv/server/unittools.c transfer_city_bugs/server/unittools.c
--- freeciv/server/unittools.c	Sat Apr  8 14:29:47 2000
+++ transfer_city_bugs/server/unittools.c	Sat Apr  8 21:11:00 2000
@@ -694,7 +694,7 @@
                          - Kris Bubendorfer
 **************************************************************************/
 
-int teleport_unit_to_city(struct unit *punit, struct city *pcity, int mov_cost)
+int teleport_unit_to_city(struct unit *punit, struct city *pcity, int mov_cost, int verbose)
 {
   int src_x = punit->x,src_y = punit->y;
   if(pcity->owner == punit->owner){
@@ -710,6 +710,15 @@
     unit_list_insert(&map_get_tile(pcity->x, pcity->y)->units, punit);
     send_unit_info_to_onlookers(0, punit, src_x,src_y);
 
+    freelog(LOG_VERBOSE, "Teleported %s's %s from (%d, %d) to %s",
+	    get_player(punit->owner)->name, unit_name(punit->type),
+	    src_x, src_y, pcity->name);
+    if (verbose) {
+      notify_player(get_player(punit->owner),
+		    _("Game: Teleported your %s from (%d, %d) to %s."),
+		    unit_name(punit->type), src_x, src_y, pcity->name);
+    }
+
     return 1;
   }
   return 0;
@@ -733,67 +742,55 @@
 
 void resolve_unit_stack(int x, int y, int verbose)
 {
-  struct unit *punit = unit_list_get(&map_get_tile(x, y)->units, 0), *cunit;
+  struct city *pcity, *ccity;
+  struct unit *punit, *cunit;
 
-  if (!punit)
-    return;
-  cunit = is_enemy_unit_on_tile(x, y, punit->owner);
-  
-  while(punit && cunit){
-    struct city *pcity = find_closest_owned_city(get_player(punit->owner), x, y);
-    struct city *ccity = find_closest_owned_city(get_player(cunit->owner), x, y);
-    
-    if(map_distance(x, y, pcity->x, pcity->y) 
-       < map_distance(x, y, ccity->x, ccity->y)){
-      teleport_unit_to_city(cunit, ccity, 0);
-      freelog(LOG_VERBOSE, "Teleported %s's %s from (%d, %d) to %s",
-	      get_player(cunit->owner)->name, unit_name(cunit->type),
-	      x, y,ccity->name);
-      if (verbose) {
-	notify_player(get_player(cunit->owner),
-		      _("Game: Teleported your %s from (%d, %d) to %s."),
-		      unit_name(cunit->type), x, y,ccity->name);
-      }
-    }else{
-      teleport_unit_to_city(punit, pcity, 0);
-      freelog(LOG_VERBOSE, "Teleported %s's %s from (%d, %d) to %s",
-	      get_player(punit->owner)->name, unit_name(punit->type),
-	      x, y, pcity->name);
-      if (verbose) {
-	notify_player(get_player(punit->owner),
-		      _("Game: Teleported your %s from (%d, %d) to %s."),
-		      unit_name(punit->type), x, y, pcity->name);
-      }
-    }
-    
+  /* We start by reducing the unit list until we only have units from one nation */
+  while(1) {
     punit = unit_list_get(&map_get_tile(x, y)->units, 0);
+    if (!punit)
+      return;
     cunit = is_enemy_unit_on_tile(x, y, punit->owner);
+    if (!cunit)
+      break;
+    pcity = find_closest_owned_city(get_player(punit->owner), x, y, is_sailing_unit(punit));
+    ccity = find_closest_owned_city(get_player(cunit->owner), x, y, is_sailing_unit(cunit));
+
+    /* First look if both cities exist. I imagine this caused quite a few random crashes before... */
+    if (!pcity) {
+      if (!ccity) {
+	wipe_unit(get_player(punit->owner), punit); /* Nowhere to go. Wipe a unit */
+	break;
+      } else {
+	teleport_unit_to_city(cunit, ccity, 0, verbose); /*Only one of them has a homecity. Send it home */
+	break;
+      }
+    } else if (!ccity) /* pcity is non-NULL */
+      teleport_unit_to_city(punit, pcity, 0, verbose);
+
+    /* Both cities exist. Send the unit that is fathest from home home*/
+    if(map_distance(x, y, pcity->x, pcity->y) 
+       < map_distance(x, y, ccity->x, ccity->y))
+      teleport_unit_to_city(cunit, ccity, 0, verbose);
+    else
+      teleport_unit_to_city(punit, pcity, 0, verbose);
   }
 
   /* There is only one players units left on this square.  If there is not 
-     enough transporter capacity left , send surplus to the closest friendly 
+     enough transporter capacity left send surplus to the closest friendly 
      city. */
-
-  if(!punit && cunit)
-    punit = cunit;
+  punit = unit_list_get(&map_get_tile(x, y)->units, 0);
   
-  if(punit && map_get_terrain(punit->x, punit->y)==T_OCEAN && 
-     !is_enough_transporter_space(get_player(punit->owner), x, y)){    
-    unit_list_iterate(map_get_tile(x, y)->units, vunit){
-      struct city *vcity = find_closest_owned_city(get_player(vunit->owner), x, y);
-      if(is_ground_unit(vunit)){
-	teleport_unit_to_city(vunit, vcity, 0);	  
-	freelog(LOG_VERBOSE, "Teleported  %s's %s to %s"
-		" as there is no transport space on square (%d, %d)",
-		get_player(vunit->owner)->name, unit_name(vunit->type),
-		vcity->name, x, y);
-	if (verbose) {
-	  notify_player(get_player(vunit->owner),
-			_("Game: Teleported your %s to %s as there is"
-			  " no transport space on square (%d, %d)."),
-			unit_name(vunit->type), vcity->name, x, y);
-	}
+  if(punit && map_get_terrain(punit->x, punit->y) == T_OCEAN && 
+     !is_enough_transporter_space(get_player(punit->owner), x, y)) {
+    unit_list_iterate(map_get_tile(x, y)->units, vunit) {
+      struct city *vcity = find_closest_owned_city(get_player(vunit->owner), x, y, 0);
+      if (!vcity) {
+	wipe_unit(get_player(vunit->owner), vunit);
+	return;
       }
+      if(is_ground_unit(vunit))
+	teleport_unit_to_city(vunit, vcity, 0, verbose);
     }
     unit_list_iterate_end;
   }
diff -Nur -X/home/thue/freeciv-dev/no.freeciv freeciv/server/unittools.h transfer_city_bugs/server/unittools.h
--- freeciv/server/unittools.h	Sat Apr  8 14:29:47 2000
+++ transfer_city_bugs/server/unittools.h	Sat Apr  8 20:36:32 2000
@@ -51,7 +51,7 @@
 int build_points_left(struct city *pcity);
 int can_place_partisan(int x, int y);
 int enemies_at(struct unit *punit, int x, int y);
-int teleport_unit_to_city(struct unit *punit, struct city *pcity, int mov_cost);
+int teleport_unit_to_city(struct unit *punit, struct city *pcity, int mov_cost, int verbose);
 struct unit *is_enemy_unit_on_tile(int x, int y, int owner);
 void resolve_unit_stack(int x, int y, int verbose);