  We have developed an efficient isospin projection method in the shell model
Monte Carlo approach for isospin-conserving Hamiltonians. For isoscalar
observables this projection method has the advantage of being exact sample by
sample. The isospin projection method allows us to take into account the proper
isospin dependence of the nuclear interaction, thus avoiding a sign problem
that such an interaction introduces in unprojected calculations. We apply our
method in the calculation of the isospin dependence of level densities in the
complete $pf+g_{9/2}$ shell. We find that isospin-dependent corrections to the
total level density are particularly important for $N \sim Z$ nuclei.
