We describe an extension to the density matrix renormalization group method
incorporating real time evolution into the algorithm. Its application to
transport problems in systems out of equilibrium and frequency dependent
correlation functions is discussed and illustrated in several examples. We
simulate a scattering process in a spin chain which generates a spatially
non-local entangled wavefunction.Comment: 4 pages, 4 eps figures, some minor corrections in text and Eq.(3