Translation:Ze leven niet.
What's wrong with “Zij zijn niet aan het leven”?
Nothing, but it sounds strange, since "leven" is not something like cooking or sleeping, but something you do a very long time, like being or believing.
Is there a major difference between when you use "ze" or "zij"?
I wouldn't say it's major, there are a lot of situations in which you can use either. The difference is a matter of emphasis.
Hmm, ok. Thanks:)
Does wonen only work when it's in regard to where someone lives?
Think of wonen more as "resides" than lives
Why is it not "ze zijn niet leven?" Why is the "are" dropped in this context?