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would you say that submitting to most of the major directories (paying $50) to each, is a better way to go than say paying for inbound links. Since $50 one time is a lot cheaper than paying someone 50-100 per month for a text link on their home page (with the same PR as a directory).
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Directories are the best place to start. You should also skip any search engines submission services -- not needed.
Having home page ad is more than PR, you are also looking for traffic. Home page ads will bring a lot more traffic than any directory listing. However, if traffic is not your thing, directory listing is just as good.
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Is it also superior to doing reciprical links because the link popularity is much better for having all inbound links from high PR sites and you have few or no outbound links.
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Yes, one-way link is better, but that should not stop you from trading links.
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or do you think its best to submit to the directories but still aquire reciprical links?
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Do both
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is doing reciprical links with people a waste of time if they just want to put your link on their links page (which as PR 0) and tons of other listings?
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Could be. But if you select your partners well, that should not be a problem. I have link partners that give me PR5-6 all the time. Although, a lot more give me link on their crappy PR0 pages.
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should i only focus on getting links where my site is only 1 of a few links on a decent PR page (preferably a home page) and recipricate with selective home page relevant links of my own?
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If you can managed it yes. Otherwise, a link is good as long as it's a direct link. You can skip anyone that give you redirected link, since it won't help you much.
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and should i be concerned about seo for a home page if i have link text which isnt really relevant to the keywords i am trying to focus on.
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Focus on trading relevant link.