A very good and acceptable starter rod would the Berkley Air IM7's and the Fenwick HMX rods in the 6-12 or 8-17 lbs test range. They are comparable price-wise to the Ugly Stiks, but are lighter and more sensitive. They aren't a tough (Ugly Stik's having more fiberglass), but because they have less fiberglass, they will be a bit more sensitive, to most people. There have been success stories with the Okuma Celilo, but I can not recommend them. I've seen too many come back broken a couple eyes above the ferrule. Most were not operator error, ie high sticking, because they were too low for that.
Rods should last you a long time. Get the best one you can for your budget. Its like a boat, buy the biggest one you can for your budget. You'll grow into it, but your rod wont grow with you. Granted, fishing is a lot more about the end user, so its not always necessary to buy the OMGIGOTAWESOME diamond rod. It all depends on what you want out of it. However, like scalecarp said, you get what you pay for. Lamiglas and Fenwick HMX are not equals. Loomis and Berkley Air's not equals. Fetha-styx and Ugly Stiks are not equals.
If you want my honest opinion, don't short yourself. Look at some the rods up for sale on the classifieds and auctions here on the site. THere are some fine fine rods for cheaper than retail. You might spend more than a traditional "starter" rod, but in the end, I think you'll feel it justified.