The borders are working as designed. It will not be changed as it is one of the principle game mechanics of GalCiv.
In essence, the AI (and you) can build anywhere. However, build in the middle of someone else's territory and that planet will eventually get swallowed up.
Civ 4's culture and GalCiv's influence are not the same. There is no starbase equivlanet in Civ 4. As a result, cultural warfare is a major part of the GalCiv universe. If the AI builds some dinky colony in the middle of your territory, it won't take long for it to become yours.
Because the AI sucks right now.
Ever won a game in Civ IV by swallowing up all the other cities through culture?
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