Can't comment on the flys/lures (or can't add anything to what joe b said), but have an opinion (who doesn't) on the hip boots vs. chest waders:
1) Hip boots are better for walking if you will be covering any distance between your rig and the fishing location;
2) If you'll be doing anything besides fishing (i.e. hunting, hiking through the dew-covered brush, etc) hip boots are preferable by an order of magnitude
3) (Personal opinion): I know lots of people use them and safely, but in my view, the possibility of getting killed with chest waders is simply too high and outweighs the benefits of using them, particularly in running waters (i.e. deep rivers). If your chest waders get water in them, your life preserver won't be enough to keep you floating.
Lots of views on this topic, but that's my thought.