1. Yes, an Ugly Stik Lite, M action is plenty strong for bass, though not particularly sensitive. It would do fine until you can afford something better.
2. A Shimano Solstace is also fine. I'd get a 2500 size and spool it up with braided line around 10 or 15 lb test. Next, I'd learn to tie a leader on the end of the braid using an Albright knot.
3. Definitely try out some soft plastics. I'd look at bass pro for some Gary Yamamoto Senkos, or Yum Dingers, or Bass Pro Stik-o worms in "natural" colors like watermelon, green pumpkin, black, and so on.
Next buy some Gamakatsu Wide Gap Finesse hooks in size 2, and 1 (in hooks, 2 is smaller than 1 until you move up into the 1/0, 2/0 and so on. Then hooks get bigger as you go up.
Tie that hook on your leader or braid with a Palomar knot.
Then hook your worm perpendicular to the hook, in the center of the worm.
That's the "wacky" rig and it is deadly. Awesome for beginners and seasoned pros alike.