You can get away with everything you need for at or around $600. I just picked it back up a year and half ago and here is what I got:
Waders from Bass Pro: You dont need the latest and greatest from Simms, make sure they are comfortable and have lots of knee bend for stepping over boulders and whatever else you might encounter in the river. I think I got mine for $150
Boots: I would say avoid felt bottom and go with rubber or something that has vibram soles. Get a size larger than your feet in case you need to put on extra thick socks for the winter or colder days. I got mine from Trout's for about $120. Mine are Simms but its only because they were the only brand I could find that made a size 16 (Im 6'8").
Rod: I suggest a 9 foot 5 weight for here in CO and it seems to be the rod size of choice for almost all trout fishing. I wavered between an Orvis Clearwater and a St. Croix Imperial. Ultimately I went with the Orvis rod because I took their free Fly Fishing 101 class and got a coupon for $50 off a rod purchase. I think I paid about $180 or so after the coupon.
Reel: Another battle I had. One guy said its just jewelry for your rod another guy said its vital. I ended up with a Lampson Konic for about $140
Line: Went with Scientific Anglers GPX 5WF pretty standard at $75
Misc: Leader, Tippet and flies, you could spend another $25-$40 depending on brand and amount of flies.
Ive been using the same setup now for over a year and a half and no complaints. Ive got a ton of fish on this set up from small to large. Ultimately its the fisherman not his gear that is going to get the fish so you could spend $2000 and not catch a damn thing or try and go budget and fun with it. There is nothing wrong with getting a cheap rod/reel/line setup from BPS or Cabelas if you just want to try before you make a serious investment. Check Craigslist too, I find tons of stuff on there for great prices, in fact just picked up a 6wt rod and reel combo for $250 that originally ran close to $800 new.
Lastly be patient and have fun, there is something very serene and calming about standing in the middle of a river "hunting" fish.
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