We derive new time-local stochastic Schrodinger equations which offer a ful
ly non-Markovian extension of conventional quantum state diffusion (QSD). T
he Feynman-Vernon influence functional of a linear heat bath is constructed
as the stochastic mean value of time-local action terms, defining a linear
stochastic Schrodinger equation. As a test, conventional QSD is recovered
in limiting cases allowing the Born-Markov approximation. We further transf
orm the dynamics to obtain a non-linear, norm-conserving Schrodinger equati
on with appealing properties: It is suitable for numerical simulations, and
it has a well-defined classical limit even before noise averaging. (C) 200
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