Like others have said, I would spend my money on the reel, over the rod. A good reel, compared to a cheaper reel, will:
-help to keep your line from tangling and twisting
-have a smoother, more reliable drag system
-be made from aluminum/graphite, compared to a plastic.
-paired with any 7 foot rod, allow you to cast farther.
In my opinion, one of the best rods for the money would be the Fenwick Eagle GT. The Eagle GT is an extremely lightweight and sensitive rod. Pick it up, and it will blow you away compared to a similarly priced rod like the Shimano Convergence, which will feel heavy and clunky.
For example, you mentioned wanting a longer, medium light rod.
Le Baron sells the 7 foot, medium light action model for $57.54.
http://lebaron.ca/pdf_files_sp09/fishing/f...k_techna_av.pdf
At that price you can easily spend $100-$120 on a good reel and still stay within your budget.
For the reel, go with either the Shimano Sahara ($95.36). At 6.9 ounces, the 1000 model is actually lighter than a lot of the more expensive Shimano reels, including the Stradic and Sustain.
http://lebaron.ca/pdf_files_sp09/fishing/shimano_sahara.pdf
Or if you want to save a little more money, go with the Daiwa Exceller ($75.63)
http://lebaron.ca/pdf_files_sp09/fishing/daiwa_hardbodyz.pdf
The Shimano is a bit more of a flashy reel, but a lot of people rave about the Exceller as a great reel as well. It even comes with a spare spool, something Shimano has gone away from.
Hope this helps!