I've been using a fly and bubble setup almost exclusively the past few years. It really is a great setup for alpine lake fishing - especially with shoreline brush like we have in the Cascades and Olympics. If we had a lot of stream or river fishing I'd be all over a Tenkara setup, but for mountain lake fishing the fly and bubble is hard to beat. Paul's setup is a pretty good one.
If you can find a fly rod to use this system with, you'll get some shocking casting distance. An 8 or 9 foot rod with a pretty soft flex can launch a bubble so far you'll clear the spool on a lightweight spinning reel. I use the more traditional bubble below for two reasons: 1) It seems to fly a little better. The tubing one Paul shows is awesome for being able to keep your rod rigged. It can stay attached and collapse with the rod. I've found it "tumbles" on the cast, though, and I'm more likely to get tangles and it almost certainly reduces distance. And 2) when you hook a fish the fish will pull the bubble underneath the water so it's fighting you and the bubble. No big deal if it's just about catching fish, but the traditional bubble that doesn't attach to the line like the tubing bubble does will stay on the surface and the fish pulls the line through it as it runs, dives, and fights. This gives a much better "feel". All the twists of and turns of the catch are between you, the rod, and the fish. The submerged bubble can dampen that quite a bit depending on the size of the fish and the size of the bubble.
Both work great, both have advantages and disadvantages. If you can find it, there's a great book called "Fish Don't Think" that is easily the best fly and bubble publication I've ever seen. Tailored 100% for mountain lake fishing with this method.