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Most people with kids want 4 doors as it's easier to get the kid in to safety seats, so I assume this is true in your case as well?
Toyota Tercel, Echo, or Yaris, I also like the Corrola but I've known a handful of folks who have them burn a ton of oil, 4 door Yaris hatch back would be at the top of my list and in about 10 years when my car rusts out will most likely be my next gasoline car.
I would suggest a Honda Civic, but other then the DX non of the 4 door versions get very good mileage and even the DX kind of sucks unless you get the hybrid or something that is old enough that it's starting to rust out as well.
Others I would look at would be
Mazda 3
Scion xA
Kia Rio
All of those should get 35+ EPA mpg, have versions with 4 door and be in your price range.
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