I have tried numerous things and nothing seems to let me drop a text object to the floor and have each letter act separately. My thought is that I will have to make each letter separately and then apply physics to each letter. I have also tried the "split object" command but that doesn't let each letter act differently, even when different physics is applied. Thanks

Open in the vertex modeller. Or...make multiple text objects each containing a single letter.

I inserted each letter as a separate object and applied physics to each one for my animation. www.shonner.com

I've done it both ways, and the vertex route is easier for making sure they stay lined up like text should. Create your text. Convert to Vertex. Duplicate. Go into Vertex modeler, when asked DO NOT edit the master. Create a new master instead. Delete extra letters, but make sure you DON'T move the letter to the center or something like that. Repeat for each letter until you have X number of master objects, that will all be lined up correctly in the assembly room. Apply physics, add spices, toss in some lights, and stir. (Render.) ;) Don't forget your Mom in your Oscar acceptance speech. :D

Thank you all. I actually was doing it your way bluetone except I wasn't doing the "create a new master" thing. It saves some steps that way. Thanks again to all!