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Not sure what you're asking about setting the bevel vs setting the edge, but the first step in honing a razor of that age is to simply get the two sides of the bevel to meet in the middle all along...

Wait I'm confused. Where's the original post that I was replying to?

An 800 grit stone may well be *creating* the microchips. Go ahead and move up to 2k grit and see if they disappear. I've got some razors that microchip even from 4k or 8k hones. I have to hone...