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I'll echo what Daox says: there's no easy way to make your car into a hybrid. The Poulsen hybrid bolt-on kit (search for details) - probably the simplest approach - isn't available yet. Otherwise, you're in for a serious amount of work/fabrication.
Just out of curiosity, did you consider buying a used 2nd generation Prius instead of the Corolla S? (I ask about used because it would have been closer to the price of the new Corolla.)
It would have saved you some head-scratching on how to convert your car into a hybrid!
FYI, a significant chunk of hybrids' fuel consumption superiority in urban driving (for the typical driver) has less to do with the electric motor than with the engine's automatic stop/start behaviour. Once up to operating temperature (and depending on a few other factors), the engine in most hybrids is OFF unless it's actively being used to propel the car - it stops running whenever you release the accelerator when coasting or sitting at a stop.
You can do some of that yourself with the ignition key in your Corolla. (With caveats about increased starter / battery wear, and fewer opportunities for coasting because yours is an automatic.)
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