I use a straightline T handle surf rope. Think I paid about 40 bucks. You have to be pretty diligent to find surf ropes on sale, but I'm sure a sale or two will pop up between now and spring.

On the board, despite popular opinion I wouldn't waste money on the ride. You will advance past it too fast. I got a Walkers Project first board and loved it from day one. I like that new Squirt from Inland Surfer for value also and is designed for advancement with the ability to take 3 fins.

I see Phase 3 boards really cheap on Ebay all the time also.