The story he comes up with to explain that is pretty hilarious too (what we get to hear of it, anyway).
Rango: "Bullet hits the shovel, ricochets back towards Number Three and THAT'S WHEN THE ROOF CAVED IN, igniting the thermos of pure grain alcohol instantly vaporizing his bodily form leaving nothing but a charcoal statue and a high-pitched squeal." *freezes in place* "Eeeeeee..."
Ambrose: "Hold on there, that's only six. What happened to Number Seven?"
Rango: "Number Seven? Hell, he died of infection."
Rango setting Bad Bill's face on fire. Repeatedly. While Bill just Death Glares at him the whole time.
Even better: if you watch Bill you see that he's just about to speak when Rango burps fire into his face.
Pretty much the whole sequence when the posse is in the middle of the desert and Wounded Bird speaks up:
Wounded Bird: *scattering feathers in the air*
Rango: "I see you're consulting with the spirits."
Wounded Bird: "No, I'm molting. Means I'm ready to mate."
Rango: "... oh. I-I'll keep that in mind..."
Wounded Bird: *picks up a cactus fruit* "Cactus fruit."
Rango: "Ahh, yes... The ancient cactus fruit. *takes the fruit* I believe your people use it as a seasoning when preparing your native dishes." *eats the fruit*
Wounded Bird: "Also natural laxative."
Rango: *chokes and coughs the fruit back out*
Wounded Bird: "Shh, pick up trail. Three men, heading west. One blind, one with... *sniffs the air* ... enlargedprostate, riding sidesaddle."
"And until the people of Andromeda Five return him safe and sound, I will not sell my ranch!"
Rango gives a eulogy for Mr. Merrimack, the bank keeper:
"We are gathered here today to honor this man, Mr. Merrimack. You have the right to remain silent. Speak now or forever hold your peace. Amen."
a.k.a. Fluffy Joe.
Rango giving a Death Glare to the Mariachi Owls to keep them from singing about his death in the Mojave Desert anymore.
In the extended ending of the film, Rango attempts to give one last speech with a silly, booming voice before riding off into the sunset on a roadrunner:
"My fellow comrades. There will be times when you doubt yourself. When you feel pummeled by the cataclysms of life, remember this moment. Remember me. Know that I will be there watching you, sometimes at inappropriate moments. That's part of the deal. And remember, within all of us resides the true Spirit of the— [Rango suddenly falls off his roadrunner.] Let's take that from the top."
Watch the end credits carefully - at one point, you can see the owl with the surf guitar imitate The Who, then Jimi Hendrix.
The posse put on a play to distract the bank robbers. One of the robbers isn't impressed