Now using the backup. Problem was (couldn't see collected items if spawned in same position as Ninja). New solution (besides a slight delay before you can collect)...items now spawn 5 pixels more to the right than before.
And, I still don't know what the hell is going on in that screen cap. It looks like 16-pixel-high sprites, but I'm certain that mode is never set. Bug exists in all 3 emulators I tested. Oh, well, in the trash. Moving on.