Alright, so if I spawn an "itemdrop" object that keeps track of 4 "bouncepad" objects every time a monster is killed, the game performance grinds to a halt after about 10 itemdrops are on the screen.
The "bouncepad" object is basically just an invisible sprite object that the items are registered to bounce off of, so it makes it look like you have 3d physics. Each bouncepad receives a random Y position near the enemy's last x,y coord.
There's got to be a way to optimize this.