You don't need to spend a fortune to get into BFS. 'Pikerwoods' mentioned 'Needham's Specialist Tackle' in his initial post, and this would be a very good place to start.
I began BFS fishing with a cheap rod and reel combo I bought off Ebay for around £100. It wasn't very good. The rod broke first time out and the reel felt 'cheap' and wasn't at all easy to cast small lures with. I got my money back and then did the research I should have done in the first place.
Long story short: I bought a Tsurinoya 'Wolf' baitcasting rod (£49.99) and Tsurinoya Silver Fox SF50 baitcasting reel (£62.50) and haven't looked back. Both are excellent pieces of kit and great value for money. I have subsequently spent a bit more on upgrades but the Tsurinoya tackle compares very favourably to more expensive items. One advantage with the SF50 reel is that you can buy a spare spool (£14.99) which is very simple to change and gives you the option of trying both braid and fluorocarbon.
If I can just add to the braid vs. fluorocarbon discussion; I think both have their place. One of the advantages of fishing fluorocarbon straight through to the lure is that this eliminates the need for a knot to connect a leader to your main line. I've used braid as light as 6 lb. b/s and believe me, you've got to be very careful knotting this to fluorocarbon. It is so fine in diameter it has a habit of cutting into the fluorocarbon when you draw the knot tight. The heavier the braid, and the heavier the fluorocarbon, the less of an issue this is. By the time you get up to 10 lb. braid and 6 or 8 lb. fluorocarbon things are a lot easier.
The other thing with fluorocarbon, compared to braid in lighter breaking strains, is the abrasion resistance. Fluorocarbon is very good for this, but light braid isn't. I tend to use 4 or 5 feet of fluorocarbon as a leader because of this, although I know others only use a couple of feet.
With regard to fixed spool reels vs. bait casting reels, I think both have their place and the choice is very much with each individual. I've used bait casters for all my lure fishing (except drop shot) for a great many years and they suit me better. If you're not used to using multipliers or bait casters then BFS fishing with tiny lures probably isn't the best place to start. It is a more challenging way, but ultimately more satisfying way of fishing I think.
