This paper employs direct spectral fitting of individual orbital data in or
der to measure rapid X-ray iron K alpha line and continuum spectral slope v
ariations in Seyfert 1 galaxies with unprecedented temporal resolution. App
lication of this technique to a long RXTE observation of MCG -6-30-15 indic
ates that the line flux does vary on short timescales, but that these varia
tions are not correlated with (less than or similar to 1 day) changes in th
e continuum flux or slope. These rapid variations indicate that the line do
es indeed originate close to the black hole, confirming predictions based o
n its very broad profile. However, the lack of a correlation with the conti
nuum presents problems for models in which the line variations are driven b
y those in the continuum, modified only by light-travel time effects. Inste
ad, it may be that the line responds according to a physical process with a
different timescale, such as ionization instabilities in the disk, or perh
aps that the geometry and physical picture is more complex than implied by
the simplest disk-corona models. These data also indicate that the slope of
the underlying power-law continuum (Gamma) shows strong variability and is
tightly correlated with the continuum flux in the sense that the spectrum
steepens as the source brightens. All of these results have been checked wi
th extensive simulations, which also indicated that a spurious correlation
between Gamma and Compton reflection fraction (R) will result if these quan
tities are measured from the same spectra. This casts serious doubts on pre
vious claims of such a Gamma -R correlation.