Don't scrimp on the line Hardys do a Fantastic light wheight DT line about £30 I use the 3wt straight as a die and nice and Limp.
Loop used to do a reel the ??? midge, cant for the life of me remember the full name but a freind had one and loved it,
Ta mate, I just ordered an Airflo River & Stream Ultra High Floating (£44.95, sale price £14.95 including VAT) from Tacklebargains. That'll do me! I only flyfish for 2-3 months a year anyway, during the traditional coarse closed season.
Still undecided on the reel - the Greys looks good but it is rated 4/5. Still, looks light enough. The trouble is the rod weighs virtually nothing so I could really do with something tiny to balance it properly... the Loop sounds tasty, but I think I'm well outside the Loop price range unfortunately!