If it was me in your situation, as much as I love the HCH, I would wait until my financial situation was stronger.
Your current car doesn't sound too bad, as long as the things they are taking car of in the shop right now get fixed up alright.
Save up for your dream car; by year's end maybe you'll be better able to afford it.
Honda is supposed to be coming out with another hybrid model for 2009 (?). It's supposed to be priced less than the HCH. Maybe it would be worth waiting to see what that model is like.
You might want to check out the following website for advice on how to get the best mpg you can from your current car:
http://www.cleanmpg.com/