Fly Rod/ Reel Set up for Steelhead etc

Okay been down to the river fishing the run and we arent getting near as much action as the fly fisherman are with our spawn rigs. What would you recommend for a rod and reel or a combo to start off? Im not looking to spend a ton, so i guess im just looking for what rods are decent and what reel (the more important part i believe) Im pretty sure an 8 weight would be what i would get. also what length would be good? Backing???? Thanks for any help!

the drag is basically the biggest factor in the quality of the reel right?? I would spend like 200 max.

Right now St Croix has an 8wt Triumph combo outfit complete with rod, reel, line, backing (20lb test) and case for $75 in their bargain room on the website. For outfit setups that's a pretty good deal. Most cheaper setups come with a pretty crappy reel but this one seems ok, at least from what a friend told me. I have a Scientific Angler setup in the 7/8wt that ran me $100 and used it for salmon last fall and it held up ok. The drag was a bit weak but I just let line out with my hand instead. You can also try the Redington Crosswater setup, that's had good reviews and is about $120. Okuma also has some setups in that price range that also have had decent reviews.