Vongoosewink,
Was wondering if you ever resolved these issues? I recently bought a Sys 80b Hollywood Heat that came with some drop target issues, not sure if they are the same as yours though.
My drop targets all start up at beginning of each game, and with each new ball reset again... however, they do not reset after each panel of 3 is knocked down as they are supposed to. Is this the same problem you have or do yours never set up in the first place?