I'm a convert to PowerPro braid and use either a flourocarbon or monfilament leader depending on the application. If you want your bait to float, use mono. Otherwise, flouro is strong, clear (so it doesn't spook the fish) and doesn't stretch, which helps you detect strikes better. Chad taught me the Albright knot for joinging the two and it only took a little bit of practice to master.
For rods, get the best that you can afford. You can buy the St. Croix Premeir series for about $100, but they only come with a 5 year warranty. G. Loomis rods are twice that, but carry a lifetime warranty. I used Berkeley rod for years and the difference that a G. Loomis or St. Croix rod makes is unbelievable.
For reels, take Mark's advice - Match them to the rod. If the rod says line weight of 8 - 14 lbs., then find a reel made for line of 10-12 lbs and spool it with PowerPro of an equivalent diameter. Matching the reel to the rod ensures that you will get the best performance out of both. Also, plan to spend $120 - $180 for Shimano Stradic or Saros reels. With proper care, they will stand up to salt water for a very long time and are worth the investment.