Noticed that NPC's LOVE to wander, especially ones that shouldn't. (Arrille, Masalinie Merian)
Found Fargoth dead some distance away from Seyda Need and Arille was in combat the whole time I was in Seyda Need (even left his tradehouse for that matter.)
I guess this is a problem with the Skyrim nav paths vs. Morrowind's.
Some NPC's just need roaming turned off. Masalinie Merian needs to stay near the Balmora Mages Guild Teleport area at all times so you know where to find her. etc.

As of right now, the NPC's don't have any AI packages from what I've seen. AI packages seen in skyrim usually include daily schedules and/or sandbox packages, so once the AI packages ARE added, we'll be able to do stuff like have Masalinie go and stand at the Mages Guild Teleport during the same hours that shops are usually open the same way merchants tied to a specific shop work, and we'll be able to keep Fargoth from wandering by giving him a weird schedule that only permits him within the boundaries of Seyda Neen like the NPC's of Rorikstead in Skyrim.