I used the "Ear Training for the Mandolin CD" and it helped a lot. It teaches you to listen and then "hum" (really more like singing) back the notes a few at a time so you can noodle around and find them. I don't think there is any substitute for just sitting and noodling to figure out melodies. I do that a lot and it slowly improves (you get the next note right on the first try more often).
One thing I do that may help (or maybe I just think so) is I try not to look at the fret board while noodling. I tend to use a FFCP scale.
"First you master your instrument, then you master the music, then you forget about all that ... and just play"
Charlie "Bird" Parker
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