For the money, the Daiwa SS 700 is very hard to beat: AWESOME drag system, PERFECT line lay, all for about $95. It's slightly heavier than you're looking for (7 oz), but I'd put it up against any smaller reel. For a better UL reel, I think you'd have to pay $600 for a Shimano Stella.

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Starting crap on this site since Feb 2006.