My advice would be to walk in to the local shop with the best and widest selection of fly fishing gear on the shelf.
Find a salesman and show him that you have $300 cash in your wallet that you want to spend on a rod / reel / line combo.
He will show you what he has got, and you decide what you would like. Push him gently on the price tag i.e. discount for cash. If something he/she shows you falls a bit outside of the $300 total budget, then you can add some money in to the pot. Just remember, you need to know what it is you want when you walk in to the store.
Fresh or salt water, or maybe both? (Saltwater reels need to be sturdier than a freshwater only reel)
What type of fishing are you planning and where? (What weight rod? What type of action etc)
Go for the best quality line you can afford / then go for a mid ranged rod and lastly, choose the cheapest reel that will do the trick. The reel only holds the line and has nothing to do with fighting most of the fish we catch. It is not often that a fish takes you in to your backing, unless you are targeting yellow fin tuna or marlin - but then you will need a hell of a lot more than 400 bucks to start off with.
Why did I say only use $300 dollars - with the money that is left over you can now buy flies to your heart's content. A man can never have enough flies, trust me
Have fun shopping
Wessel