Bob
Fishing is, I think the most relaxing sport there is, and just about any age person can participate. I think your son will really enjoy it. I've never seen a young person that didn't.
A good all round reel is a Zebco. Zebco makes many differant brands, but most are closed face which is best for a youngster. Closed face reels tend to not get as many tangles compared to an open face, where line can spool off the reel and create a mess. Dad will not have very much time to fish when this happens. Zebco reels are fairly cheap also. When I was a kid I didn't even know there was anything differant. One zebco I had was the 33 model and it is a great reel. It was in mud, and water differant times but it kept on working. Well most of the time anyway. Zebco still makes this reel and I think you can get one for around $20. Zebco also makes reels that are more apealing to kids. They are called hot reels and they come in differant colors. They even make a reel that floats. Zebco also makes more expensive closed face reels, with a few more bells and wistles. I bet just about any sporting goods store or department store carries them.
As for fly rods it depends on what you want to spend. You can get well up over a grand on a fly rod and reel. There are many good fly rods and reels that are a lot cheaper. Your best bet is to just go look and find one you like. You really don't need an expensive fly rod and reel to catch fish. Good luck