That question is a tough one. It really depends on your preferences. I have casted fly rods that cost 1K + and hated them and $200 fly rods and loved them. Each person has his/her own casting style and rod(s) that match it. If you are starting out, by all means get a quality set-up, though I recommend a cheaper (remembeer, its relative when that words come to fly outfits) setup in the $200-$300 range. Don't get me wrong, some people's favorite rods/reels (including my personal favorite) come from this price range, but to start out with get something decent that you can learn on before plunking down some $$$$ for waht you really want to end up with. And if it is at all possible. ALWAYS cast the fly rod outfit before you buy it. If you don't like it, then its not worth a penny.
The big question is: What are you willing to spend?
What sort of water will you be fishing? For what fish? A 7wt really is ownly necessary for big fish like saltwater and bigger inland fish like salmon/steelhead. For general freshwater fishing, a 5wt is what you need.
There are MANY fly rods manufacturers, IMO Orvis is over-priced for what you get. I still love many of their products, but there are better values out there. Then again, the clearwater outfit is a nice starting point. Expect to spend $400 and up for any better Orvis Outfit.
My own preferences bias me, so be sure to cast several fly rods before buying to feel what you like. (i.e. fast action, slow action, medium action, etc...)
A couple of good companies include:
Rods - Allen Fly Fishing Store
Allen fly fishing. Their new ATS rod is a sweet med-action especially for the price. I like the XA and the Myth as well. Their trout series fly reel is also very nice. Exceptional custome service is the rule with this company.
Temple Fork Outfitter (TFO) is another great company with a great no-fault warranty. My favorite rod of all time is their BVK, and I also have the Pro, finesse, TiCrX, and a LK Signature Series. Their reels are nice but IMO you can do as well with a cheaper reel.
Sage makes awesome stuff, but I personally don't care for their lower-end fly rods, they definately aren't a traditional starting point.
St. Croix makes nice fast action fly rods. The Imperial is around $200 and sweet. The legend Ultra is amazing, even at $400.
In the end, it boils down to what YOU want and what you like. Cast some more fly rods, get a feelk for them ,do some research, and shop smart. You won't regret it.