  Neutron correlation spectroscopy can exceed direct spectroscopy in the
incoming beam intensity by up to two orders of magnitude at the same energy
resolution. However, the propagation of the counting noise in the correlation
algorithm of data reduction is disadvantageous for the lowest intensity parts
of the observed spectrum. To mitigate this effect at pulsed neutron sources we
propose two dimensional time-of-flight recording of each neutron detection
event: with respect to both the neutron source pulses and to the rotation phase
of the pseudo-random beam modulation statistical chopper. We have identified a
formulation of the data reduction algorithm by matching the data processing
time channel width to the inherent time resolution of this chopper, which makes
the reconstruction of the direct time-of-flight spectra exact and independent
of all other contributions to instrumental resolution. Two ways are proposed
for most flexible choice of intensity vs. resolution without changing the
statistical chopper or its speed: changing the size of the beam window during
the experiment or varying intensity and resolution options in the data
reduction algorithm after the experiment. This latter is a unique and very
promising new potential offered by the correlation method. Furthermore, it
displays reduced sensitivity to external background, also due to the much
higher signal intensity. This is particularly advantageous for extending the
operational range to higher neutron energies. In hot and thermal neutron
vibrational spectroscopy, the statistical chopper approach allows us to achieve
very significant gains in spectrometer efficiency compared to using
conventional choppers. High intensity for the most intense features in the
spectra and the reduced sensitivity to sample independent background make
correlation spectroscopy a most powerful choice for studying small samples.
