I have settlers on a block more then four squares away from any city now how do I make them settle?

EDIT: Nvm I got it. Does this settlement act just like a city?

The settlement first has to grow to 1000 people, at which point it becomes a regular city. While the settlement is growing towards a city it can't produce anything. It should also be noted that if you establish a settlement where there's not enough food (plains, forests, etc) the settlement won't be able to grow to a city and will eventually be abandoned.

Yep - an outpost isn't guaranteed to grow into a city. Manual pages 62 and 63 describe the process and variables. Be sure to use your Surveyor to scope specific squares when deciding exactly where to put your outpost.