It's not nearly as big as the $100,000+ Hummer H1 - a military vehicle way too raw for civilian use, or the far more civilized, but swaggering, gas guzzling, $52,000+ H2. So, if any Hummer makes sense in this era of $3-a-gallon gas, it would have to be the new Hummer H3. Built by General Motors (GM) on the same platform as the reasonably small Chevy Colorado pickup, the H3 is smaller, more fuel-efficient, and at $28,935, considerably less expensive than its larger siblings.

Walkaround: The H3 has Hummer's traditional, assault vehicle styling, boasting a vertical windshield, 7-slot chrome grille, round headlights set in square holes, and the spare tire mounted on the cargo door. The H3 looks nearly identical and just as big as the H2 — until you see them side-by-side. Almost 17 inches shorter with a wheelbase about 11-inches less, as well as 6.5 inches narrower and 4 inches lower, the H3 is actually about the size of a midsize pickup.

The chrome $595 tubular side steps on my Victory Red test H3 looked hot, but were too narrow to actually be useful getting in or out. Based on personal experience with other GM vehicles, I suspect the $520 running boards aren't any better.

 Interior: The H3 looks pretty upscale inside - especially with the Luxury package. Instrumentation is easy to read and there are large, easily reached controls, supportive seats, and handy dual front cupholders. However, the glovebox and front console bin are small.

GM says the H3 is a 5-seater. Occupants sit up high, and while there's ample room for four tall adults, like most SUVs, the center rear seat is not a place you can sit comfortably for any length of time. Because of the corner position of the wheels and short front overhang, the driver's seating position is a little tight. At 6 feet even, I was unable to stretch my left leg out. While the steering wheel tilts, it doesn't telescope, which would allow the driver to push the seat back far enough to solve that problem.

The H3 comes with lots of standard equipment, including OnStar, A/C, cruise control, tilt wheel, an AM/FM/CD player, power mirrors, windows and locks with remote keyless entry, rear wiper-washer and even a tire pressure monitor.

My test H3 had the $3,125 Luxury option group, which features leather upholstery, heated power front seats and an upscale sound system with a 6-disc CD changer. It also was equipped with XM satellite radio ($325) and the $850 chrome appearance package that offers chrome door handles and outside mirror caps and roof rack.

The cargo area is large and can be increased by flipping the split-folding rear seats forward — although they don't fold down quite far enough to make a totally flat floor. The cargo opening itself is rather high, and the bulky full-size spare tire attached to the swing-open cargo door makes it somewhat heavy to open - especially when parked on a hill.

Under The Hood: The Hummer H3 is powered by a 3.5-liter, 4-valve, dual overhead cam, five-cylinder powerplant with variable valve timing that delivers 220 horses to the highway. Because the H2 has been so roundly criticized by environmentalists and others for its blatant gas guzzling, GM was shooting for, and hit, a 20-mpg EPA highway rating with the H3 — using the 5-speed manual gearbox. The figure is 19 with the $1,695, 4-speed automatic, which also comes with the Stabilitrak anti-skid system.

This is the first Hummer offered with a stick by the way — although it's not available with Stabilitrak. The manual might be a nuisance for folks who don't like shifting during in-town driving, but should be terrific for off-roaders ordering the $1,025 Adventure Preferred Equipment option with its special low-ratio transfer case, locking rear differential, off-road suspension and on-off road tires.

However, the Adventure package can't be ordered with the shiny $800 chrome alloy wheels, which don't make sense for off-roading, but will be hard for some H3 buyers to pass up.

Behind The Wheel: At a hefty 4,700 pounds, acceleration is pretty decent. The H3 clocks the 0-60 drill in a respectable 10.5 seconds with acceptable 65-75 mph passing times. But it could use a 6-cylinder or even a small V8 for more strength when loaded with people and cargo.

The H3 utilizes the Colorado pickup chassis and drivetrain. It's beefed up and offers additional ground clearance and underbody protection to help deliver Hummer's remarkable off-road capabilities. It has a tight, 37-foot turning radius, and although I didn't get to drive it off-road, other journalists have told me it does as well as the H2 climbing over rocks, logs and other off-road obstacles, or when fording streams. The full-time all-wheel-drive system with low-range gearing and locking center differential not only help off-road, but as I found out, the standard traction control, huge tires, anti-lock brakes also provide a tight grip on wet, slippery roads.

Steering and handling are quite satisfactory and the ride is generally composed. Since this is a truck, expect the ride to become truck-like on some roads. The brake pedal has a nice linear action for smooth stops, but because of the weight, braking distances are average.

Whines: The spare tire obstructs driver vision through the small back window, making the large foldaway, outside rearview mirrors especially helpful. Visibility in general is below average because of the small windows and high-sill doors. Climbing in and getting out with any grace requires above-average agility, and there's no gracious way for a woman in a short skirt to do it.

 Bottom Line: The new, lower-cost, more user-friendly Hummer H3 isn't for everyone. But it's price, size, fuel economy and unique image make it a much more acceptable choice as a daily driver than the H2. And the H3 still features all the off-road prowess that's one of Hummer's major selling points.