I killed a dragon inside Whiterun town and the towns people came and gawked as usual. After the battle all but the vegetable seller and her daughter resumed their normal activities, they however just stand outside my house, Breezehome and won't go back to their normal script. I tried the console command "recycleactor" but that just made them disappear. Any ideas on fixing this minor but annoying glitch will be gratefully accepted.

Leave town for several days and come back?

I've got exactly the same problem, the veggie woman has been stood by the city wall at the back of Ysolda's house for about a month now, real time.

yes, this should fix it. for some reason i had hadvar following me through whiterun for a while...i don't remember how long it took, but nowadays he's gone.

If you've got access to the console, I've read that killing Carlotta Valentia and then resurrecting her cures the bug, she should go back to her duties.

Are you using mods? If you are, there's a possibility you may be experiencing the navmesh bug. This bug stops NPCs' schedules. Here's a video explaining it: http://www.youtube.com/watch?v=RlNBVOcuW3M