We revisit the collocation method of Manzhos and Carrington [ J. Chem. Phys., 2016, 145, 224110] in which a distributed localized (e.g., Gaussian) basis is used to set up a generalized eigenvalue problem to compute the eigenenergies and eigenfunctions of a molecular vibrational Hamiltonian. Although the resulting linear algebra problem involves full matrices, the method provides a number of important advantages, namely, (i) it is very simple both conceptually and numerically, (ii) it can be formulated using any set of internal molecular coordinates, (iii) it is flexible with respect to the choice of the basis, (iv) no integrals need to be computed, and (v) it has the potential to significantly reduce the basis size through optimizing the placement and the shapes of the basis functions. In the present paper, we explore the latter aspect of the method using the recently introduced, and here further improved, quasi-regular grids (QRGs). By computing the eigenenergies of the four-atom molecule of formaldehyde, we demonstrate that a QRG-based distributed Gaussian basis is superior to the previously used choices.