  Delta degrees of freedom are introduced into antisymmetrized molecular
dynamics (AMD). This is done by increasing the number of basic states in the
AMD wave function, introducing a Skyrme-type delta-nucleon potential, and
including $NN\leftrightarrow N\Delta$ reactions in the collision description.
As a test of the delta dynamics, the extended AMD is applied to (p,p$'$)
recations at $E_{\rm lab}=800$ MeV for a $^{12}$C target. It is found that the
ratio and the absolute values for delta peak and quasielastic peak (QEP) in the
$^{12}$C(p,p$'$) reaction are reproduced for angles $\Theta_{\rm lab} \agt
40^\circ$, pointing to a correct treatment of the delta dynamics in the
extended AMD. For forward angles the QEP is overestimated. The results of the
AMD calculations are compared to one-step Monte Carlo (OSMC) calculations and a
detailed analysis of multi-step and delta potential effects is given. As
important side results we present a way to apply a Gallilei invariant theory
for (N,N$'$) reactions up to $E_{\rm lab} \approx 800$ MeV which ensures
approximate Lorentz invariance and we discuss how to fix the width parameter
$\nu$ of the single particle momentum distribution for outgoing nucleons in the
AMD calculation.
