| Major_Tom |
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Frankly, it looks like you have the opportunity to run an adventure that will be talked about for years and years. Run with it.
Some considerations - and if you have to 'house rule' to make them happen, so be it.
Magic items should be subsumed into their cat forms, so if they get a +1 sword, they change to human, grab the sword, and change back to have +1 claws.
Since they are cats, they should be able to take pounce and rake. Added to backstabbing, and they'll do 1-2 +xd6. In Living Jungle, I once had a rogue reincarnated as a tree frog - his damage was nil +5d6 backstabbing. If they are willing to surround and pounce on something, they could be very effective.
Wonderful half-dragon mouse and string trap suggestions. Go with it, farther and farther out there. Yes, it's not pure D&D, but it could be wonderful fun. I would run something like that in a heartbeat.