It's always worked that way in Virtual Villagers. The population limit simply prevents couples from producing children. If there's room in the village (even if it's only room for one), mating will be fruitful. If, at that time, a mom produces twins or triplets, the population will increase by that amount. There must be hundreds of posts about that since VV1 was released, since it is a bit confusing.
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Barbara
Unicorn
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