A misunderstanding seems to remain here: although an atrocious fund will have no capital gains distributions and an excellent high-turnover fund will have many, there is no reason to be happy about capital gains distributions from your mutual fund, unless:

1. You are tax-sheltered.

2. They happen in market-beating amounts every year.

3. There is no long-term downtrend in the NAV (i.e. your fund is constantly finding successful investments, selling them at a gain, and using any reinvested distributions or new money to find equally successful investments (i.e. your fund lives in Fairyland with purple unicorns)). 

These conditions would indicate indicates that your fund is superlatively well managed for a very particular need - high income through frequent trading.  Almost no mutual fund managers can achieve this goal, due to the downside of expenses and the fact that a buy-sell-buy-sell strategy statistically underperforms buy-and-hold.

The effect of a reinvested capital gains distribution is nil.  Yesterday, your fund had 10,000 of your dollars to manage for profitable investment.  Today, if the market moves nowhere, you recieve a 200 dollar distribution, the NAV drops to 9,800, and if you reinvest the 200 to bring you back to right where you started - 10,000 under management.  Mutual fund shares are not the same as stock shares, because they are 100% arbitrary.  The mutual fund can and does make more in exchange for cash at any time and for any reason.  When they distribute it indicates they sold shares that quarter, and when you give them cash they buy more stocks/bonds with it.  If both things happen at once, it means that your mutual fund sold something in order to distribute to you, then bought something when you gave them the money back - no evidence of real profitability unless the above conditions are met.  They might be selling the IBM shares they've held for 20 years, waiting 6 months, and buying more IBM at a higher price, which costs you money at every turn.     

You can achieve the same effect as a cash capital gains distribution by selling a portion of your position at any market close.  The effect is to remove some of your assets from the management of the mutual fund company - you had 10,000 under management, you sell 200 worth of shares, you now have 9800 under management and 200 worth of cash. If you are living off the assets and their income, this may be the right choice for you.  But there is no reason you gain any benefit from following the fund's schedule in gains distributions.