In my experience, Hiking up your MPG has more to do with your driving habits than it does mods.
I've tested out a few different driving 'methods', and noticed that with a few simple changes, I go from 25 mpg to 33 mpg.
#1, shift at 2.5k revs. (this might take some practice, as shifting into below 2k revs may bog down the engine, and completely ruin any chance you had at getting a better MPG. At the same time, giving it too much gas and reving the engine up while you shift wastes gas as well)
#2, accelerate slowly. Pretty self explanatory. Try putting as little pressure as possible on the gas petal to get you going.
#3, drive at a constant speed. Have a steady foot. If you find yourself speeding up and slowing down, then your using more gas than you need to.
#4, the most important of all: coast to a stop/slow down, and time traffic lights. This is 10x more important than everything I've mentioned above. Whenever you press on the brakes, your wasting gas.
The rotation of the wheels will actually keep the engine going when your coasting (you have to leave the car in gear). I think I've noticed that it switches out from this mode into neutral at around 1.5k revs (so you can take it out of gear after 1.5k revs).
If your a master at shifting, you can put it down into a lower gear at this point, and continue your gas saving, but be warned that this will put additional wear on your transmission (something anyone with less than a third gen 2002.5 should be very concerned about).
Timing stop lights is easier than you think.
Personally, I know the timings for each stop light on my daily commute, but you don't have to memorize them all to take advantage of them.
If you see a red light ahead, don't continue at a constant speed. You should start coasting, so that you slow down slowly (by using the rotation of the wheels to run the engine). Time this slow-down correctly, and you SHOULD get to the light after it turns green. You never want to get to a light when its red, because then you have to stop, and as we all know by now, stopping is MPG's worst enemy.
The highest I've gotten with town/city driving is 35 mpg. The highest I've gotten with highway is 36 mpg.
Using these methods/tips, you should be able to get low/mid 30's 'town' driving.
Another note on MPG:
If anyone has seen Myth Busters, they had an episode on trailer myths. One was; if you tailgate a truck on the highway, then you'll decrease a huge amount of wind resistance, and get better gas mileage.
This, turned out to be true. The results were (rounded, i don't remember the exact numbers, but these are still very close)
(this was traveling at 55 mph)
100 feet behind truck: +15%
50 feet behind truck: +30%
30 feet behind truck: +40%
10 feet behind truck: +50%
The % is your increase in gas mileage.
The MINIMUM safe driving distance behind a truck, traveling at 55 mph, is 150 feet. This gives you 2 seconds of reaction time.
Tailgating a truck about 50 feet behind it will give you around 43-47 mpg on the highway at 55 mph.
However, its very dangerous to do. Similar results might be achieved by tailgating cars (the study was done with trailer trucks).
Keep in mind that after 50 feet, your completely in the truck driver's blind spot! Driving like this is basically suicidal! Not to mention illegal!
Edit: If you have an automatic, then sorry. lol.