Mongo,
I've been fishing the canal down to Race Point for many years.
I've had a Shimano Bait Runner 6500 for 15 years and I'll fish with for many more.
The also make a 4500 and a 3500, these are smaller reels with less capacity, but are also good choices.
These are popular reels for shore fisherman because it has a double drag system. It's great for fishing with cut bait, sand eels, black eels...etc. The reels light drag is set to keep the tide from taking the bait, when the fish bites you give the handle a crank, or flip the lever, and this puts the reel into the fighting drag.
I've read a couple of articles in magazines which claim that you can fight tuna with this reel.
There is a variety of rods out there and you should go to a store where you can heft the rod and swing it a few times. Pick the one that feels good in your hands. The length from the butt to the reel seat varies between makes and this should be a consideration. There are fiberglass rods out there that cast well and are great for lifting fish in the canal.
A Shakespear Ugly Stik, 10.5 ft heavy, is a good choice for a starter rod and is fairly inexpensive. You'll pay more for the reel than the rod. Although I find this stick a little loose for long casting, it'll do the job. I have a few friends who have this rod and they've had a lot of fun with it.
After a few years you'll most likely get a custom rod built to fit you and where you want to fish, but this is not cheap, a good rod can run you $250 and up. I use a conventional rod and reel for long casts off the beach. The rod is a custom and cost me $325 2.5 years ago and the reel, a Shimano Calcutta, goes for $250. But you should see the distance! Conventional reels are harder to learn than a spinning reel, and they're not as suited for baiting line and sticking in a rod holder.
These are my recommendations for the beginner, but there is a lot of opinions on this subject.
Lee