Most of what you just said is over my head, but definitely thanks for fixing it. Seems to be working fine now. No more bodies through the floor. There's no FPS issues that I can see.
I had similar problems from time to time, and I also work with Blender. What Phitt said is absolutely right. Collision meshes have an "outer" side as well as an "inner" side, just like "normal" meshes.
In Blender it's impossible to see it, unless you use a Blender version <= 2.45. You can then select the collision mesh and press 'u', which displays the UV-layout for the mesh.
Normally, this would not make much sense for a collision mesh, but it shows you "in which direction collision is applied" for havoced objects.
(edit: not sure if it can cause problems, so you should remove the UV layout afterwards... the important information survives anyway)
That's why arrows, items and dead bodies fall through the object.
If you use a Blender version > 2.45, your only chance might be to select your collision mesh, go to edit mode, select all vertices and press "Ctrl-N" to "Recalculate normals outside".
This works for most meshes, as long as they are relatively simple and connected.
That's another reason why i keep using version 2.45. The UV-Edit mode is awesome. Don't know why they removed it