Nolan is on the hot seat after compiling a 16-32 record in three seasons, and Smith also has his final chance to prove his worth after three up-and-mostly-down seasons as quarterback.

Smith opens training camp as the favorite to hold off Shaun Hill, who found his way into the quarterback competition after ending the season with 10 strong quarters of play before sitting out the final game with a broken bone in his lower back.

With the 49ers off the hook for more guaranteed money owed to Smith, the club now has a relatively simple financial question to answer for next season. If Smith proves that he is worthy of a $9.6 million salary in 2009, he will be around.

If not, the club will be forced to part ways with the No. 1 overall selection in the 2005 draft - a player who signed a six-year, $56 million contract that included $24 million in guaranteed money.

"This is year No. 4 for me," Smith said. "Being a veteran, having gone through this three times, knowing what to expect, it is still a little different with the new system coming in and trying to grasp it. There is enough talk about potential and capabilities. It is about coming out here and consistently playing well."

Before Smith can play well, he has to get comfortable in a new system - with his fourth offensive coordinator in four seasons.

In Smith's first three seasons, he worked under coordinators Mike McCarthy, Norv Turner and Jim Hostler. Now, he is in the midst of a crash course to learn the complex system employed by Mike Martz.

"There are definitely high stakes," Smith said of the daily practices. "Every day is going to count. We only have two weeks before our first game (Aug. 8 against the Raiders). Every single day is going to be evaluated. When you come out here, you can't have an off-day and lose focus."

Nolan said he has no timetable for making a decision, though clearly the club would like the competition to be settled at the quarterback position before the third exhibition game, Aug. 21 at Chicago.

"I'd like to make it (the decision) today," Nolan said. "But I also want our best quarterback to win the job."

While Smith is used to stepping into the huddle with the No. 1 offense, it's a new sensation for Hill. He got his first chance to throw an NFL pass after Smith was out for the season with a shoulder injury and backup Trent Dilfer sustained a concussion. Hill was the No. 3 quarterback last season.

When he finally got a chance to play, his passer rating in three games was 101.3. The 49ers won both of his starts, against Cincinnati and Tampa Bay.

"Being there and doing that does help with the comfort level when you step into a huddle," Hill said. "I can step up and say something to them and be a vocal leader. It probably helps with that."

CAMP CALENDAR: The 49ers have practices scheduled every day, leading up to their first exhibition game Friday, Aug. 8, at the Oakland Raiders. On Monday, Aug. 4, the 49ers will travel to Napa to hold two joint practices against the Raiders. The 49ers practice most mornings, beginning at 8:50 a.m. Every other day, they have a second full-squad practice in the afternoon. On the other days, they hold special-teams practices in the afternoon. The 49ers break camp on Aug. 22, the day after an exhibition game at the Chicago Bears.

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