How do we make our relations 'close' ?? Like he said, he has given them everything they have wanted. Likewise here.

A lot goes into relations. Some races natually dislike each other, so it's going to be harder to get good relations (Drengin vs. Torian, for example). You need a strong enough military that they respect and/or fear you. If you're close enough to them to appear a threat, that will lower relations. You may need a higher diplomacy level. Your bribes may not be big enough (also note that the affect of bribes don't last all that long, though larger bribes may last longer). Use the Report tab under the Foreign Policy to see some of the factors affecting your relations.

Also, one of the easiest and most rewarding ways to increase relations is trade. If there arn't other tensions, trade can make a big difference. Earn money and friends at the same time. The two games I won culturally relied heavily on a strong economy with lots of trade to keep eveyone placated. Of course, another nice touch is having the galactic achievment, forget what its called, that makes your ships in orbit look several times as strong as they really are.

Here is how I get an alliance if I really want one.

Factors:

1. The race needs to be "Friendly" with you. (once they are close the alliance option is there)
2. Being of the same alignment helps.
3. You need to be semi-powerful.

How to ally.

1. Get your economy going strong.
2. Save up lots of BC.
3. Pick the friendly race you want to ally with.
4. give them 1000bc
5. give them 1000 more bc.
6. give them 1000 more bc.
7. etc..etc..etc..
8. if they start to act cocky..and talk about how they were expecting your gift.. that means (I think) that giving them any more wont help. Wait a few turns and try again..though..chances are they wont ally with you..or it will be to expensive to get them too. (at least in my experience)

9. eventually..you will notice the alliance option pop up. This happens when you have given them enough to move from Friendly to Close.

I've got a + for being the same ethics. Also I have one for having a strong miliatry (though I also get a minus for being militaristic) and two for trade. I've got one for being a long time friend, too. I think there's another, perhaps for strong economy? I sometimes have a minus for close borders, sometimes not.

The Drengen have surrendered to me - I've even got a trade route from one of their planets to the furthest Torian planet. One Torian planet has come over to me via influence and there's a trade route out of there, too. I've given them most of the techs they own, money, and even a few ships. No change.

So I got crazy. I saved the game and gave them all my techs plus the Drengen planets. No change. I updated to the 1.0X version, loaded the save again, and gave them almost everything I have save one planet and the diplomacy-related techs (they already have Alliance). NO CHANGE. Now come on, even if they decided I was no longer worthy of being an ally, shouldn't the friendship bar have moved a little in some direction!? This is really starting to look like a bug.