I use the tekoda 500 (with briad) on the following rod for fluke and other bottom fish and it is the ideal rig IMO...a real pleasure to use and it will not bust your bank account. You can of course go up a few notches to higher end reels but IMO it is not needed, this is a ***very*** comfortable set up that is lighter, smoother then any similar penn reel. (but my 9 year old only fishes with a penn 320LD and does not want to use anything else) but IMO this is a FAR nicer rig.
Fish4Stripers, I would suggest a shimano 4500 bait runner, best bang for the buck, it is spinning but it is great for livelining, chunking, trollin and casting. can't go wrong and right in your price range. Put it on a medium heavy 7 ft rod and you will be all set. If you want a rod selection just pm me.