My 2p's worth. Don't bother with a hybrid, buy a small diesel. Cheaper to buy and just as economical.
I run a 96 Citroen AX diesel (1.5, normally-aspirated) and get about 55mpg town or distance. I run it on a mixture of diesel and veggie oil; the ratios vary with the temperature. In the summer, it's about 25/75 diesel/oil, with correspondingly less oil as the temperature drops (as with most oils, veggie oil gets thicker the colder it is; too cold and it won't pump. Some people upgrade their fuel pumps, others fit pre-heaters.) Running it with at least a 50/50 mix makes the car run noticeably quicker, smoother and quieter. Smells nicer than diesel, too!!
(Incidentally, I work for a Honda dealership and have driven the hybrid. What can I say? It's a car, when you stop, the engine 'stops', which is quite spooky until you get used to it. My opinion? See sentences 2+3.)
