Animating objects using local coordinates?

I’m trying to create an animation of a spaceship turning around.

To do this, I want to make the ship move on the LOCAL x-axis so that when it is rotated on the z-axis, it will keep moving forward relative to itself, like a real vehicle.

However, I can’t find a way to animate objects using their LOCAL coordinates. How does one do this? (I’m using Blender 2.56)

Thanks!

As far as I can tell from your description, this should be blender’s default behavior. Can you post an example blend file that shows the misbehaving movement? (Maybe I’m missing something…)