A Turboelectric Distributed Propulsion (TeDP) system differs from other propulsion systems by the use of electrical power to transmit power from the turbine to the fan. Electrical power can be efficiently transmitted over longer distances and with complex topologies. Also the use of power inverters allows the generator and motors speeds to be independent of one another. This decoupling allows the aircraft designer to place the core engines and the fans in locations most advantageous for each. The result can be very different installation environments for the different devices. Thus the installation effects on this system can be quite different than conventional turbofans where the fan and core both see the same installed environments. This paper examines a propulsion system consisting of two superconducting generators, each driven by a turboshaft engine located so that their inlets ingest freestream air, superconducting electrical transmission lines, and an array of superconducting motor driven fan positioned across the upper/rear fuselage area of a hybrid wing body aircraft in a continuous nacelle that ingests all of the upper fuselage boundary layer. The effect of ingesting the boundary layer on the design of the system with a range of design pressure ratios is examined. Also the impact of ingesting the boundary layer on off-design performance is examined. The results show that when examining different design fan pressure ratios it is important to recalculate of the boundary layer mass-average Pt and MN up the height for each inlet height during convergence of the design point for each fan design pressure ratio examined. Correct estimation of off-design performance is dependent on the height of the column of air measured from the aircraft surface immediately prior to any external diffusion that will flow through the fan propulsors. The mass-averaged Pt and MN calculated for this column of air determine the Pt and MN seen by the propulsor inlet. Since the height of this column will change as the amount of air passing through the fans change as the propulsion system is throttled, and since the mass-average Pt and MN varies by height, this "capture height" must be recalculated as the airflow through the propulsor is varied as the off-design performance point is converged. Nomenclature