Just saw the discussion on IRC and thought I'd share my thoughts on the topic so it doesn't get lost: Günther basically suggested we might focus on a Goldmine scenario in order to get started with settlement. I think the general approach is right - instead of trying to implement the whole thing at once ("waterfall"), it's probably a better idea to implement it in "story" steps. The bit we could learn from extreme programming is that each step should be a fully playable situation, or ideally scenario.

So here's a list of such "stories" that I think should be possible in a normal goldmine scenario, in order of importance (given how important they are in my opinion to have fun with the scenario).
1. Player digs out gold chunk. Carries it back to flag to sell.
2. Player wins the round by collecting 50 gold pieces.
3. Player digs into the ground to discover a gold vein.
4. Player digs out flint, throws it at gold vein.
5. Player dies horribly in a mining accident.
6. Player moves the flag to shorten the way he has to walk
7. Player buys a flint (at chemical lab?)
8. Player constructs a chemical lab at a strategically good location
9. Player constructs elevator in order to speed up travel
...

Some of them might seem trivial, but e.g. the simple "dig out gold / carry to flag to sell" entry already has enough stuff to think about. What about many gold chunks? How to we signify that something is being sold - maybe sound + message giving the value?

I don't know. Maybe this would be an approach that could get us forward? As far as I am concerned, I consider myself working on an important part of step 3 (lines of sight) :)