We extend the previous work on 3D black hole excision to the case of distor
ted black holes, with a variety of dynamic gauge conditions that respond na
turally to the spacetime dynamics. We show that in evolutions of highly dis
torted, rotating black holes, the combination of excision and the gauge con
ditions we use is able to drive the coordinates to a frame in which the sys
tem looks almost static at late times. Further, we show for the first time
that one can extract accurate wave forms from these simulations. with the f
ull machinery of excision and dynamic gauge conditions. The evolutions can
be carried out for a long time, far exceeding the longevity and accuracy of
better resolved 2D codes.