Bah
Just lost mine at the foot of Caer Caradoc
I was sceptical at first but a full convert now. They take so much weight off my creaky knees and I find I can walk for much longer/further.
Mine cost about £17 and had a moulded grip, was telescopic and quite light. It also was spring loaded for shock absorption.
As for the back pack, anything by North Face or the regular walking manufacturers seem quite good, but try them on first to see how they feel and get one with side pouches for a water bottle - oh and get a small water bottle!