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This is a "Underwater Scooter". It's a handheld device to propel a diver forward. Similar devices can be seen in the James Bond movie "Thunderball".
This is part is commonly found in the Divers theme back in the late 90's (http://brickset.com/sets/theme-Town/subtheme-Divers) The part in question is a minifigure accessory: http://www.bricklink.com/catalogItem.asp?P=30092
48379 is the part number for the torso piece. 2003 would be the copyright date for the LEGO trademark. They are both promotional items which were distributed with McDonald Happy Meals. Bricklink: 7923-1 (White Soccer Player #4) Bricklink: 7917-1 (Blue Basketball Player #22)
My closest bet would be the Car Repair Shop. However, there are lots of other sets that could match the description. Edit #1: The other potential candidates: Weekend Home Auto Workshop Holiday Home Houses House with Roof Windows Holiday Villa In case none on these is what you are looking for, you could take a look at Bricklink and browse the results. ...
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