Depending on the severity of the chips, a stone like the 500 Beston might be a good choice. If the chips are really severe, a DMT XXC might be necessary.....just depends on how much metal you need to remove.
As Mark noted, adding a 2,000 grit (or somewhere in that ballpark) would get you a good, sharp edge.
If the budget allowed, I would start with:
1200 Bester (not currently in stock)
Suehiro Rika (also not in stock ATM)
As an alternate to the 1200 Bester, the 1k Ume is shaping up to be nice, but I've only sharpened two knives with it.
I've not found a good replacement for the Rika yet.....but most likely anything in that 2k to 4k range would be good.
A honing steel is meant to realign the displaced edge of a soft steel knife. The knife's edge will actually roll over and the honing rod realigns it. So, they're nice to have if you have knives that do that.
A strop can be used for the same purpose as can a high grit stone. I would rather have the high grit stone and use it to realign the edge because it also works for other things.
A ceramic hone is often used by us knife nuts on harder steel knives, and will work on the soft stuff too.
The Idahone is a popular choice.http://www.chefknivestogo.com/idahone.html