In my mind, the Bass Pro Shop's "Hobbs Creek," is the absolute best value on the market. It is a disc drag, all metal, large arbor, and handsome reel. You could even put backing and line on it, and still be close to your budget.
That said, I LOVE, LOVE, LOVE, the Redington Surge reel. you will pay a little more, but it is a bad-ass reel, with a disc-drag that is as good as much more expensive reels that I have used.
(I linked to the Caddis Fly here, but rumor has it that you may be able to find it for less dough on other sites)