  [Abridged] In galactic nuclei with sufficiently short relaxation times,
binary supermassive black holes can evolve beyond their stalling radii via
continued interaction with stars. We study this "collisional" evolutionary
regime using both fully self-consistent N-body integrations and approximate
Fokker-Planck models. The N-body integrations employ particle numbers up to
0.26M and a direct-summation potential solver; close interactions involving the
binary are treated using a new implementation of the Mikkola-Aarseth chain
regularization algorithm. Even at these large values of N, two-body scattering
occurs at high enough rates in the simulations that they can not be simply
scaled to the large-N regime of real galaxies. The Fokker-Planck model is used
to bridge this gap; it includes, for the first time, binary-induced changes in
the stellar density and potential. The Fokker-Planck model is shown to
accurately reproduce the results of the N-body integrations, and is then
extended to the much larger N regime of real galaxies. Analytic expressions are
derived that accurately reproduce the time dependence of the binary semi-major
axis as predicted by the Fokker-Planck model. Gravitational wave coalescence is
shown to occur in <10 Gyr in nuclei with velocity dispersions below about 80
km/s. Formation of a core results from a competition between ejection of stars
by the binary and re-supply of depleted orbits via two-body scattering. Mass
deficits as large as ~4 times the binary mass are produced before coalescence.
After the two black holes coalesce, a Bahcall-Wolf cusp appears around the
single hole in one relaxation time, resulting in a nuclear density profile
consisting of a flat core with an inner, compact cluster, similar to what is
observed at the centers of low-luminosity spheroids.
