[VFB] Fly Rods, Reels, and Combos

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Folks: My Rod and Reel combo is a Wal Mart elcheapo that My Kids gave Me for Fathers day 2004. I want to upgrade ASAP... But talk about confusion as to WHAT to buy... I see reels from $39.95 to $700.00. Rods from $59.95 to $900.00, and Combo's from $79.95-$10000.00. Then, I see cork drags, Teflon drags, stainless steel drags, and composite graphite drags... My reel don't really even have a drag system. You flip a button and it either had a silent NO drag, or a clicking very slight drag. Do these disc drag systems on the better reels I'm talking about have a drag system work like a regular bait type reel??? From basically zero drag all the way to line breaking drag??? And the rods come in 2-3-4-5and I've even seen 6 piece. Is a lot of pieces just for convenience when traveling???I know the thickness, or thinness in my case will dictate the type system I purchase. But how does one know what is good, what is bad??? etc etc.. Is it like the saying "You get what you pay for" pretty much, or are there any less expensive combos that ARE very good??? I'd probably want to buy a "combo" as they tend to be cheaper than buying separately...Thanks in advance for any help, Chuck