In my opinion, the Pflueger Medalist 1595 with rim control is one of the best reels for the money. I think they cost around $30 or so. Plus spare spools run around $19. I cant quite remember the exact prices but they are more then reasonable. Its nice to get a reel where the spools are not expensive. I have around 5 spools for that reel (sinking tips of different weights and floating lines of different weights).

If you are learning to fly fish, dont go to cheap on the rod. Its nice to learn on a good casting rod. Fenwicks arent to bad. As far as the length of the rod, a longer pole means more line control and easier roll casting. I like the 9'6" 8wt. Its a good all around rod. Rod length also depends on the size of the rivers you fish too.

Good luck. Hope this helps.