Some more thoughts:
I stayed away from diamond stones because I was afraid they would wear out. This is unlikely, but I have heard that they can wear out. They may last a lifetime, but they won't outlast my Spyderco ceramic stones. I've heard that you should only buy Eze Lap or DMT diamond stones.
I decided not to go with any type of oil stone because of the mess. Natural oil stones such as Arkansas stones are also slow. There are also synthetic oil stones, but I have no experience with them.
Using oil with a stone is a bad idea except for maybe the extra coarse stone. Juranitch covers this in his book. The oil suspends particles that contact the edge when sharpening causing the edge to dull.
I have no experience with water stones. Water stones can be cheap (King Stones) and be effective. The problem is that you need a bucket of water or a kitchen sink to use them. Obviously, corrosion is a factor with water. Water stones are raved about by many, but they are not convenient to set up. They are quick from what I've read and come in extremely fine grits. They also require a lot of maintenance to keep them flat. Water stones may work for some, but the maintenance, quick wear, and mess steered me away from them.
The Spyderco ceramic stones don't require flattening. They are easily cleaned with any ordinary eraser when clogged. They cut fast, but not as fast as a diamond stones. As with diamond stones, they don't require any lubrication. The Spyderco ceramic stones are also cheaper if I recall correctly than diamond stones.
For final finishing, an edge needs to be stropped. Being on a limited budget, I have little experience with this. However, If you don't have anything else, Mother's Aluminum Mag & Aluminum Polish on cardboard will polish the edge. It seems sharper, but I have no evidence to back this up.
There are other methods of sharpening such as paper wheels. I've heard that these take metal off too quickly. I have gotten a quick, sharp edge using an MDF wheel and green polishing compound, so they should work.
If you're looking to just do knives, the Wicked Edge and the Edge Pro are excellent choices. Being limited to knives, I chose bench stones. Someone on Blade Forums did a comparison and found that the Edge Pro gives the most consistent edge of any system if I remember correctly. The Edge Pro is also cheaper than the Wicked Edge.
I'm no expert, but I hope that what I've posted is helpful.