What happens to an SLO, if it stops meeting the queue criteria?  I have some resolved incidents that have a grayed out SLO that has a status of Active and Cancelled = yes.  This seems to cause discrepancies with reporting.

Hi,

Please refer to the link below:

SLA in SCSM 2012. Part 2. How its works

http://blog.scsmsolutions.com/2013/01/sla-in-scsm2012-part2-how-it-works/

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So according to that article, an active status definition is: "This status means what SLA tracking system is live for this object: the object isnt canceled, the Start Date is not null and End Date is null."

I am however seeing some items with an active status and a cancelled yes.  Is this a bug?

In the incident history, I can see the the relationship changes that remove the Incidents out of the queue and the SLA groups when they fall out of scope.  Is it normal to see the SLO in the Service Level section when it no longer applies?

Yes it's normal because of the existing  "Service Level Instance Time Information" relation of the incident.