I have my collision detection similar to how it is in the slides:

sprite.update() 
sprite.draw()
for sprite in sprite_group:
    sprite_collided = pygame.sprite.spritecollide(sprite, sprite_group, False)

for sprite in sprite_collided:
    sprite.bounce() # bounce just reverses the direction it's moving

This is making the sprites freak out in one place as they are drawn in, and all sprites spawned will collide with only the previous spawned sprite (which is the one that's freaking out).  

Any suggestions?

I think you're right.   I see it now.  Thanks