This action has been replaced by Found New Colony
You may only build nests outside the zone of control of another nest but never within 25 meters from another player's nest and not within 100 meters of a Controlled Colony.
Nests may only be built on what the service at http://www.geonames.org/ says is within a country and most likely also more specified parts. This location info is stored with the nest data and is used for scoring lists. This for example means that you most likely will not be able to build nests at sea.