I just started out this past summer and I am using a Cabela's Genesis 5wt 8'6" reel/rod combo. On sale, the combo kit was $100 and has served me well. I have landed a 20" rainbow on the Provo, big browns in the Grand Tetons, a smallish carp on Utah Lake, small browns and stocked rainbows on Tibble Fork, and hubcap bluegills at a private pond.
The rod tip broke after four months of heavy use and laziness when breaking ice off the guides. Cabela's gave me a new rod/reel just before Thanksgiving since it was withing the 1 year warranty. I searched their website and it doesn't look like they carry it any more online, but the Lehi store might still have some in stock.
Aside from the rod, reel, and line, the kit came with a rod/reel case, a couple trout flies, 3 9ft leaders, 3 yarn indicators, flotant gel, a small chest pack, 1 clipper, and a couple other items. Overall, it was a great way to get started. I only had to buy additional tippet and flies.
I am barely at the point where I need to upgrade to a better line and maybe a new reel.
As for fly tying, I built my own kit mainly at the suggestion of a co-worker who had previously worked as a guide and professional fly tyer. I got a Regal-knock off from jsflyfishing.com (
http://www.jsflyfishing.com/cgi-bin/item...-Vise.html). From there, I simply got enough materials for the flies (and sizes) that I wanted to tie and fish with: Zebra midge, Pheasant Tail, Hare's Ear, Glo Bug, San Juan Worm. Add threads, hooks, bead heads, and tools, you'll be in about $100. That is probably a little bit more than most starter kits, but the nice thing is that I know that I can and will use all the materials in my starter kit. I will still buy most dry flies that I fish with, which isn't too often.
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