I also have ran into party in the village centre featuring a jaguar, three gnolls, and a couple of fears but that's to be expected when you have lots of mods. Gnolls (from WAC) seem to be intelligent enough to use http://i285.photobucket.com/albums/ll54/pero_lozhach/screen6-3.jpg.
I'll edit my copy of .esp to make villagers essential just in case. Phitt, seems that you said that they are essential at first but not after quests. What should I edit result scripts or some quest script to keep them essential?
WAC adds a lot of spawn points all over Cyrodiil, so I guess there is nothing I can do about that.
A bit late for a reply maybe, but if you still want to keep the villagers essential and didn't find it yet, the part you need to alter is in the result script of the dialogue topics. For Wades-In-Mud it's after he sold you the map, for An-Rei, Hides-Her-Mind and Teel-Nah it's after you finished their quests and for Reetul it's as soon as you speak to him in the cave (after waking him up).
Further experience - The array errors problem I experienced with AN/Display Stats/OBSE 19, is now resolved with a new version of the last two ... So have now returned to using obse 0019 (new version 0019b)
Had a re-visit to mudwater (again a new game start so mudwater is virgin territory this time round), fish and crabs in the water again.
Its not a big concern obviously just being cosmetic placement of dead fauna, but thought you may be interested.
With obse 0018 no problem, 0019 problem re-appears.
That's pretty weird. I'm still on OBSE 18 so I'll check it out once I update to 19. Would be worth mentioning in the OBSE thread if it is true for everyone using OBSE 19 and not a mod conflict since OBSE is not supposed to change things in the game on its own. In Mudwater it may only be a cosmetic problem, but in other mods it may cause serious problems (break quests etc).