  We present an analysis of interstellar and intergalactic absorption lines in
the FUSE spectrum of the low-redshift quasar PG0804+761 (z=0.100) at
intermediate resolution (FWHM=25 km/s) in the direction l=138.3, b=31.0. With a
good signal-to-noise ratio and the presence of several interesting Galactic and
extragalactic absorption components along the sight line, this spectrum
provides a good opportunity to demonstrate the ability of FUSE to do both
interstellar and extragalactic science. Although the spectrum of PG0804+761 is
dominated by strong absorption from local Galactic gas, we concentrate our
study on absorption by molecular hydrogen and neutral neutral and ionized
metals related to an intermediate-velocity cloud in the lower Galactic halo at
-55 km/s, and on absorption from OVI extended to negative velocities. In the
IVC, weak molecular hydrogen absorption is found in 5 lines for rotational
levels 0 and 1, leading to a total H_2 column density of log N = 14.71(+-0.30).
We derive an OI gas-phase abundance for the IVC of 1.03(+0.71-0.42) solar.
Absorption by OVI is found at velocities as negative as -110 km/s, but no
absorption from any species is found at velocities of -180 km/ where absorption
from the nearby high-velocity Complex A would be expected. We suggest that the
extended OVI absorption traces hot gas above the Perseus spiral arm. Finally,
we find intergalactic absorption by an intervening HI Ly betax absorber at
z=0.019 and absorption by HI, CIII and OVI in an associated system at z=0.102.
No intervening OVI absorbers are seen in the spectrum of PG0804+761.
