harvey,
If you think I'm passionate about ponds, wait 'till you get me started talking about fly fishing.
I'm so glad you are interested in it. I absolutely love it, especially in ponds. In fact, I would venture to say that it is as effective, if not more effective an approach to fishing in ponds as conventional tackle, but loads of more fun.
We are blessed to have George on this Forum who is an accomplished fly fisherman. I'll throw some thoughts out and hope that George joins in also.
First, the rod is the most important piece of the system. Whatever level of money you decide to put into this, put most of it into the rod. There are very expensive rods out there and very cheap ones also. I recommend the TFO rods, a Texas company that is blowing away the competition, as a terrific rod at a reasonable price. I use a TFO TiCr 5 wt rod exclusively in my ponds. There are other good choices as well, but whatever you buy try it out first and see if it �fits� you.
Second, the line for ponds should be a WF (weight forward) floating line to match your rod weight. You can get into sinking lines later if you find the need but a WF floating line will serve you well for most circumstances. Get backing adequate for your reel capacity.
Third, the reel�the fly reel is just a line holder, spend as little as possible, unless you intend to get into such fish as Tarpon which require sophisticated drag systems.
Fourth, leaders�much technical talk about this, but just get some mono about 9 feet long and tie it on your fly line and go fishing. I use 6 pound test in ponds. Works great but you need a little heavier set up for HSB to avoid over stressing them.
Fifth, flies. Fly tying is absolute fun for some but a pain in the but for others. Flies are cheap. For starters, go to Wal Mart, buy a bunch of Miss Prissys and other bugs and go fishing. BG are an absolute blast on a 5 wt fly rod. Nothing I enjoy more, and I have caught Tarpon, bonefish, salmon, all species of trout, etc., etc. but nothing is more fun than catching a 1 pound BG on a Miss Prissy, nothing.
Please ask questions�I�d love to help and I�m sure George will also. Welcome to fly fishing, after this you will never turn back.