We have developed an algorithm based upon pseudospectral ab initio electronic structure methods for evaluating correlation energies via the localized Moller-Plesset methodology of Pulay and Saebo. Even for small molecules (similar to 20 atoms) CPU times are diminished by a factor of similar to 10 compared to canonical MP2 timings for Gaussian 92 and the scaling is reduced from N-4-N-5 in conventional methods to similar to N-3. We have tested the accuracy of the method by calculating conformational energy differences for 36 small molecules for which experimental data exists, using the Dunning cc-pVTZ correlation consistent basis set. After removing 6 test cases on the grounds of unreliability of the experimental data, an average deviation with experiment of 0.18 kcal/mol between theory and experiment is obtained, with a maximum deviation of similar to 0.55 kcal/mol. This performance is significantly better than that obtained previously with a smaller basis set via canonical MP2; it is also superior to the results of gradient corrected density functional theory.