I fish mostly small streams and use rods in the 6'6" to 7'6" range. Personally I think anything over 7-6 is a bit long for small streams. If you are looking for a strictly small stream rod, look for a 7ft 3 or 4 wt rod. Eagle Claw Granger had them last year for 39 bucks. I know several who bought them over the 'net, and they can be found in some sporting goods stores also. Here is a link to a Granger 7ft 3wt
Prolly the best deal that you are going to get in that range is the Scientific Anglers starter kit for trout fishing. It sells for about $70-80 at Wally mart and around $100 at Dick's and other places.
The rod has decent casting qualities for the price range, and I know of some clinics that use them for instruction. The quality of the flyline is a lot better in that one than other kits because it is from SA.
my fav rod is my pflueger trion...i got it for under 60 bucks and it has handled a lot and i mean a lot of big fish. It casts well for me, mends well and I just love it...it looks pretty good to.
I think the best "cheap" fly rod around are the old Fenwick fiberglass rods - 5 and 6 Wts in 7 1/2 ft lengths are fairly common, and you can pick one up on ebay for ~$50.
They have a nice, classic, slow action, and work well for dry flies and nymphs.
My first fly rod was one of these, and although I now own over 20 rods (God, I hope the wife never looks in the fishing gear closet), I still fish it several times each year.