We report the results of preliminary studies of a 2 to 4 nm SASE FEL, using a photoinjector to produce the electron beam, and the SLAC linac to accelerate it to an energy up to 10 GeV. Longitudinal bunch compression is used to increase ten fold the peak current to 2.5 kA, while reducing the bunch length to the subpicosecond range. The saturated output power is in the multi-gigawatt range, producing about 10(14) coherent photons within a bandwidth of about 0.2% rms, in a pulse of several millijoules. At 120 Hz repetition rate the average power is about 1 W. The system is optimized for X-ray microscopy in the water window around 2 to 4 nm, and will permit imaging a biological sample in a single subpicosecond pulse.