For large flatheads I like 10/0 King Kahle hooks from Eagle Claw. I fish on a budget, but I can still handle any flathead that wants to take the bait with a Penn 309 spooled with 30 lb braided line. You can buy one for about $70. If you want a high quality rod that's pretty pricey, the Fenwick Water Eagle is tough to beat. If you want something cheaper, an 8' Cat Claw rod works just fine.
As far as the fishing strategy goes, if you put a 5" bluegill with a little bit of the tailfin cut off for blood trail right over a drop-off, a flathead will take the bait, and you have to hold on tight because you've got yourself a freight train on!
If you've got fishin' fever, I've got the fishin' PLAGUE!