massive slowdown - help!

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I've just started working on something new and I've run into a problem. Download this to see:
www.3darteest.com/test.zip
Use WASDRF to control the camera.

What's happening is that as you rotate the camera and zoom in/out the demo experiences massive slowdowns after a little bit. For me it only takes a couple seconds but I have a relatively old computer so on newer systems it may take longer. Given the nature of the problem I at first assumed I am accidentally creating instances of something every frame but I combed through the code (and there isn't much; like I said, I just started working on this) and couldn't find anything like that.

Do other people experience slowdown when running the demo I posted? If so, any ideas what the problem is?