FrankP is right: Forschner Victorinox makes terrific knives. They've done extremely well in professional tests at Cook's Illustrated. Amazon sells them for $20. I only use three knives: a Forschner Victorinox with Fibrox handle, paring knife, and a serrated knife for bread.
If your knife is in pretty good shape, you can get by with a cheap sharpener like the AccuSharp Knife and Tool Sharpener (about $12). It does a good job and doesn't take off much metal. It's also pretty easy to use.
If you let your blade get very dull or notched, I'd recommend an electric sharpener, but a good one (Chef's Choice makes the best) costs at least $80. Electric sharpeners can take a lot of metal off the blade quickly, so be careful. They are easy to use and built to last.
Stones are very good at sharpening knives, but it takes time to learn how to maintain the angle as you sweep the knife across the stone. I would reserve them for prized, expensive knives. The Accusharp does nearly as good a job without the guesswork.