This is the second part of a series of papers dealing with an extensive cla
ss of analytic difference operators admitting reflectionless eigenfunctions
. In the first part, the pertinent difference operators and their reflectio
nless eigenfunctions are constructed from given "spectral data", in analogy
with the IST for reflectionless Schrodinger and Jacobi operators. In the p
resent paper, we introduce a suitable time dependence in the data, arriving
at explicit solutions to a nonlocal evolution equation of Toda type, which
may be viewed as an analog of the KdV and Toda lattice equations for the l
atter operators. As a corollary, we reobtain various known results concerni
ng reflectionless Schrodinger and Jacobi operators. Exploiting a reparametr
ization in terms of relativistic Calogero-Moser systems, we also present a
detailed study of N-soliton solutions to our nonlocal evolution equation.