How can you possibly have 800+ objects on screen? is each object a single pixel or is the entire screen just filled? I mean to be fair I have a 1920x1080 screen in front of me so each object could be 2 pixels wide and 2 pixels tall and it wouldn't quite fill the entire screen width wise 1600x1600. I'm just curious why you would have such a scenario as I've been toying with game development a bit.
As for the technical question a Timer is not guaranteed to be triggered at the moment after the duration has expired (just some time after), it depends on how quickly it's able to get around to processing the code for the timer tick. My guess is having so many objects is exhausting the CPU (on *NIX systems use top in the console to see or in Windows use task manager is it peaking a core of the cpu?). This can probably confirm or deny it or if you turn off the creation/updating of your objects and see if the timer itself ticks at the correct rate then. If either is true it suggests the CPU is peaking out.
Consider using Stage3D to offload the object drawing to the GPU to free up the CPU to run your Timer. You may also want to consider a "game framework" like flixel to help manage your resources though I don't know that it takes advantage of the GPU... actually just Googled and found an interesting post discussing it:
http://forums.flixel.org/index.php?topic=6101.0