There doesn't seem to be a way to create new sprites on the fly. I suppose the only way to simulate this is to create the maximum number that you will need (initially hidden) and then "show" them as necessary. Is this the only way?
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Yes, this is the only way. If you don't actually need the sprite and just want a picture of the sprite on the screen, you can use the "stamp" block under the pen catagory to make an imprint of the sprite on the screen.
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I wanted to do the same exact thing :-/
see my post here:
http://scratch.mit.edu/forums/viewtopic.php?id=227
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