If you don't already know what their crop harvest in 32BC was like, you can practically guarantee that it won't be the same in the simulation. This is exactly the kind of use that, as I pointed out earlier, if you had enough information to actually pull it off, you wouldn't need to.
I'll just reiterate my response then:
Any information about a physical system at time T reveals information about that system at all other times - places constraints on it's configuraiton. Physics is a set of functions that describe the exact relations between system states across time steps, ie the temporal evolution of the system.
We developed physics in order to simulate physical systems and predict and understand their behavior.
This seems then to be a matter of details - how much simulation is required to produce how much knowledge from how much initial information about the system.
For example, with infinite computing power I could iterate through all simulations of earth's history that are consistent with current observational knowledge.
This algorithm computes the probabilities of every fact about the system - the probability of a good crop harvest in 32BC in Egypt is just the fraction of the simulated multiverse for which this property is true.
This algorithm is in fact equivalent to the search procedure in the AIXI universal intelligence algorithm.
Many folk here on LW take the simulation argument (in its more general forms) seriously. Many others take Singularitarianism1 seriously. Still others take Tegmark cosmology (and related big universe hypotheses) seriously. But then I see them proceed to self-describe as atheist (instead of omnitheist, theist, deist, having a predictive distribution over states of religious belief, et cetera), and many tend to be overtly dismissive of theism. Is this signalling cultural affiliation, an attempt to communicate a point estimate, or what?
I am especially confused that the theism/atheism debate is considered a closed question on Less Wrong. Eliezer's reformulations of the Problem of Evil in terms of Fun Theory provided a fresh look at theodicy, but I do not find those arguments conclusive. A look at Luke Muehlhauser's blog surprised me; the arguments against theism are just not nearly as convincing as I'd been brought up to believe2, nor nearly convincing enough to cause what I saw as massive overconfidence on the part of most atheists, aspiring rationalists or no.
It may be that theism is in the class of hypotheses that we have yet to develop a strong enough practice of rationality to handle, even if the hypothesis has non-negligible probability given our best understanding of the evidence. We are becoming adept at wielding Occam's razor, but it may be that we are still too foolhardy to wield Solomonoff's lightsaber Tegmark's Black Blade of Disaster without chopping off our own arm. The literature on cognitive biases gives us every reason to believe we are poorly equipped to reason about infinite cosmology, decision theory, the motives of superintelligences, or our place in the universe.
Due to these considerations, it is unclear if we should go ahead doing the equivalent of philosoraptorizing amidst these poorly asked questions so far outside the realm of science. This is not the sort of domain where one should tread if one is feeling insecure in one's sanity, and it is possible that no one should tread here. Human philosophers are probably not as good at philosophy as hypothetical Friendly AI philosophers (though we've seen in the cases of decision theory and utility functions that not everything can be left for the AI to solve). I don't want to stress your epistemology too much, since it's not like your immortal soul3 matters very much. Does it?
Added: By theism I do not mean the hypothesis that Jehovah created the universe. (Well, mostly.) I am talking about the possibility of agenty processes in general creating this universe, as opposed to impersonal math-like processes like cosmological natural selection.
Added: The answer to the question raised by the post is "Yes, theism is wrong, and we don't have good words for the thing that looks a lot like theism but has less unfortunate connotations, but we do know that calling it theism would be stupid." As to whether this universe gets most of its reality fluid from agenty creators... perhaps we will come back to that argument on a day with less distracting terminology on the table.
1 Of either the 'AI-go-FOOM' or 'someday we'll be able to do lots of brain emulations' variety.
2 I was never a theist, and only recently began to question some old assumptions about the likelihood of various Creators. This perhaps either lends credibility to my interest, or lends credibility to the idea that I'm insane.
3 Or the set of things that would have been translated to Archimedes by the Chronophone as the equivalent of an immortal soul (id est, whatever concept ends up being actually significant).