In this paper, we present a discussion of the physics of modern Hall thrusters and the impact that this physics may have on the design of new thrusters of varying geometries and power. Particular attention is placed on the design of a linear-device (non-coaxial) and the issue of closing the electron drift in the E x B direction. A new thruster was designed with appropriate scaling to operate at powers in the 50-100W range. The thruster has been fabricated and preliminary tests have been performed. A stable operation has been achieved only at off-design conditions. Attempts to operate the discharge stably at design conditions were unsuccessful, and resulted in pulsed operation in the frequency range of approximately 1 lOHz. It is believed that the pulsed operation is a result of the lack of an adequately closed (short circuited) Hall current.