moving target

I have to be honest and say that I'm not entirely sure what your problem is. (I can't run the code because I don't have the media (and I'm too lazy to create any))

I don't understand what you mean by this sentence:What targets are you talking about? Please try to be more specific about what targets your are referring to, what gun you are referring to, and what exactly you mean by revolving (I know what revolving means, but I don't know how YOU want your targets to revolve).

However, here are a few pointers:
I see that you definitely don't need these lines:

		 		FreeEntity xo
		 		FreeEntity yo
				FreeEntity zo

		 		FreeEntity xo2
		 		FreeEntity yo2
				FreeEntity zo2

in your PutBadmans function. Those variables contain entity locations not entity handles. You are just freeing random entities which either actually does free random entities in your game or they (the FreeEntity commands) just fail (which is what probably happens 99.999999% of the time).

You definitely don't need to set the entitytypes every frame of you game:

	For hit.badman = Each badman
		EntityType hit\entit,1
		PositionEntity hit\entit,hit\xo,hit\yo,hit\zo
	Next
		For hat.badman2 = Each badman2
		EntityType hat\entit2,1
		PositionEntity hat\entit2,hat\xo2,hat\yo2,hat\zo2
	Next

Do that when you initialize your badmen like in this For-Next loop:

For tt= 1 To 20
	hit.badman = New badman ;					where did HIT come from... I made it up. I could
	hit\entit = CopyEntity (badman) ;			have used a letter or any word not reserved
	hit\xo=Rnd(-100,100) ;						NOTE " \ " not " / "
	hit\yo=Rnd(-50,50)
	hit\zo=Rnd(100,150) ; 						Since B3D uses both + and - nums I had to use Rnd
	EntityType hit\entit,1
Next ;										That way my badmans are spread out evenly-ish

I suspect that this code::

	For hit.badman = Each badman
		PositionEntity hit\entit,hit\xo,hit\yo,hit\zo
	Next

is intended to not only set the badmens locations but you actually want to use it to UPDATE the badmens locations? If that's the case then you need to add some line in there something like:

	For hit.badman = Each badman
		hit\xo = hit\xo + rnd(-.1, .1)
		hit\yo = hit\yo + rnd(-.1, .1)
		hit\zo = hit\zo + rnd(-.1, .1)
		PositionEntity hit\entit, hit\xo, hit\yo, hit\zo
	Next

Note however, that using the above code will just cause them to wiggle around a bit. But since I don't know what you mean by revolve, I don't know how you actually want them to move.