An adaptive distributed noise reduction algorithm for speech enhancement is considered, which operates in a wireless acoustic sensor network where each node collects multiple microphone signals. In previous work, it was shown theoretically that for a stationary scenario, the algorithm provides the same signal estimators as the centralized multi-channel Wiener filter, while significantly compressing the data that is transmitted between the nodes. Here, we present simulation results of a fully adaptive implementation of the algorithm, in a non-stationary acoustic scenario with a moving speaker and two babble noise sources. The algorithm is implemented using a weighted overlap-add technique to reduce the overall input-output delay. It is demonstrated that good results can be obtained by estimating the required signal statistics with a long-term forgetting factor without downdating, even though the signal statistics change along with the iterative filter updates. It is also demonstrated that simultaneous node updating provides a significantly smoother and faster tracking performance compared to sequential node updating.