  We discuss the Auxiliary Field Quantum Monte Carlo (AFQMC) method applied to
dilute neutron matter at finite temperatures. We formulate the discrete
Hubbard-Stratonovich transformation for the interaction with finite effective
range which is free from the sign problem. The AFQMC results are compared with
those obtained from exact diagonalization for a toy model. Preliminary
calculations of energy and chemical potential as a function of temperature are
presented.
