You can get a solid outfit for $200. I highly recommend St Croix rods, but the most important thing you can do is go to a local shop, cast a few rods, and find one you like. For a reel, buy the cheapest thing you can find. For fishing small streams, all it does is hold your line. Spend your money on a high quality rod and line.
My passion for catching fish is eclipsed only by the fish's passion not to be caught.