Salem

I got a question. Is it possible at all to find a island on a lake or east of starting town? I mean can there be islands huge enough to make village with mine/lime etc. I guess lake must be big enough, just wonder if its coded in map generation.

Yes there can be islands and I have read about one such island in Roanoke which people settled and are fighting over, you can read the story in this thread which has a backstory and screen shots of this island: viewtopic.php?f=6&t=4978

I dont know if there are any in the sea east of town though - I havent heard of any

Yep there are islands in lakes, check this map:
http://salem.comlu.com/maps.php?plym

Unless you are a hermit do not make your pclaim/tclaim on a lime node unless it is gigantic.

That being said there are islands big enough to run a town on. Are they isolated enough to avoid the 1000x1000 trial by fire... that's a good question.