The '93-'97 Corolla/Prizm with either the 1.6L (4A-FE) or 1.8L (7A-FE) engine would be my first choice. The older '88-'92 didn't drive as nice in my opinion, but are just as reliable. The '98 and later with the 1ZZ-FE engine had some oil burning issues, but are still good cars. I have experience with all of the above and I really liked (and miss) the '97 Corolla the most. 40-50 MPG shouldn't be a problem with a manual Corolla, I occasionally got that in an automatic.
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2000 Honda Insight
2000 Honda Insight
2000 Honda Insight
2006 Honda Insight (parts car)
1988 Honda CRXFi
1994 Geo Metro
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