Today I got to see an NPC hunting! I gave him a roach because i wanted him to cook it, and then I followed him around to see what he would do. There was a bear in the area that he was tracking. His dog stayed closer to me than to him while he was trailing than bear -- it may have been better for the dog to stay closer to his adventurer but maybe the dog judged i might be the bigger threat or maybe the NPC didnt want him rushing ahead and getting killed by the bear. Once the NPC got aggressive, the dog came running to help with the fight and together they took down the bear. The NPC skinned the bear and cut it for meat. He kept 76 meat cuts in his inventory and left the rest of the meat, the skull, and the bones on the ground. Then he lit 3 fires to roast the meat. He didn't mind when I picked up the skull, took out the teeth, hung it on a nearby pine (it would be a neat touch for the NPC to hang the skull himself). I hung around for a while, his dog ate some of the meat on the ground. He also didn't mind when I took the rest of his meat cuts -- this might not be a bug, because it was more than he could carry so I guess he didn't want it.
I saw in news.txt that tanning the hide isn't implemented yet.
In all this excitement I forgot to check whether he roasted that roach i gave him at the start, but I'll go back and find him again soon but I got the punt quest at the village I took the bear meat to so it'll be a little while to I can track him down.