Ross makes a nice reel that would fit that rod for the price your looking for. Don't worry about what flies to use, stick with the standard winter flies, the goal is to get the fly in front of the steelhead and he will eat it. Lines are most important in getting your fly in that zone. There are two options in lines 1. shooting line with loop to loop connection of various head lengths & densities. 2. spare spools with lines of various sinktip densities. Each has pros & cons and is a matter of personal preference. My opinion is that a shooting line w/ loop to loop system is best from a budget stand point. I believe Aeroflo has a line system that seems to be a pretty good deal.