Sooo I know this is a known bug, just wondering if anyone found a workaround for it? My Palace is level 4, and my GR is level 4 yet it still says I need 2 levels.
Yep, the easiest thing to do is move one of your colonies to where you want your new capitol to be, upgrade the GR, and then abandon the necessary number of colonies, make your new colony your palace and then redistribute your remaining colonies. I've done it twice but I'm not willing to do it again with 5 (level 4 palace) colonies now. It's good to have a couple of mobile colonies anyway - allows you to get to those big prize inactives that have ships in their ports.
well my colonies are split into two locations. Wanted to move my capitol to the 6x 8x area just because resource gathering up there is easier. But looks like I might go for that 6th city by collecting resources in my original capitol.