9' 5 wt is the most popular fly rod sold in the U.S., and for good reason. It's close to perfect as an all around trout and pan fish rod. The Redington Classic Trout that Stonefish mentioned is thought by many to be the best of the lower price point offerings in the market. I think they are currently priced around $130. Other good value options are offered by Cabela's in their Three Forks (cheapest at around $65), RLS, and LSi lines. Any of those series can be offered on sale, so check often. I bought a couple Cabela's Three Forks rods just to see how bad a cheap fly rod can be, and they are incredibly good for the price.

Good fly lines are pretty expensive. My favorite is the Cortland 444 peach color that has been around for over 40 years. They currently run about $60. However, there is a rumor that the house brand sold by Hook & Hackle is a re-labeled issue of that well known famous line in olive color at around $35 or so. I bought one in a 3 wt to pair with my Classic Trout, and it casts like the real deal, although I haven't used it enough to know if it's as long lasting as the real deal.

The best deal I've seen on entry level fly reels are the many old cheap reels on E-bay that can be had for around $30. They originally sold for less than $10, last forever, are no longer popular, and therefore for sale cheap. Buy one, clean it up, oil it, and fish it for as long as you like.

The above is the good quality, low price alternative, that most newbies reject due to lack of high zoot cool factor, and then they go buy some POS Okuma because it has a disc drag that no one really needs.