@Nick Lindberg I just watched your excellent presentation “Update Records Owned by Inactive Users” in the Highlights of Winter ’16 Release Webinar . Per your instruction, I was able to check the box “Enable ‘Set Audit Fields Upon Record Creation’ and ‘Update Records with Inactive Owners’ User Permissions” under Setup>Customize>User Interface, however, I was not able to check the “Update Records with Inactive Records” box under setup>Manage Users>Profiles>System Administrator>Administrative Permissions. I have been told that this is locked. Are system admins not benefiting from this? I need this more than anyone else in my organization.
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I can't think of any issues you might see as far as NPSP is concerned. It's a new feature, so it might take a bit to get more real-world reports. Perhaps start with some test records first?