sbgamer,
There are some other events which need to be listened for in order to get updates to the room items. I don't have them in front of me now, but I believe they are gmcp.Char.Items.Add and .Remove and .Update.
Some of them are handled
HERE but I haven't updated it to include the .Update handling, iirc. I've got the code for it, and I really ought to get that updated accordingly. Either way, it ought to give you an idea of how to get things updating automatically (for the most part, without update you get things entering/leaving but not necessarily when they move from alive to dead/etc).
ETA: It warms my heart to hear you're getting some good use out of anything I put out here on the forums or the various IRE game forums/website scripting section. I only keep putting this stuff out there in the hopes someone can get something out of it, whether it's direct use or ideas for their own scripts. I consider it mission accomplished any time I see a post like this =)