Hi ecks,
I fish PA and find the 8 1/2' for a 5 a great all around rod. As you progress maybe a 9' for nymphing or a 7 or 71/2 for small streams but the 8 1/2' is fine.
Also I use, and recommend, the standard Orvis battenkill reels. for 15 yrs they have performed flawlessly on PA trout up to a 27" rainbow. They're about $80.
I'd save money on the reel and put it toward a good line which, I believe, is more important than the reel in this instance.
Good luck!