"I take it sharpening is removing burrs and knicks and honeing is finely grinding the edge to a razor edge?"
Well, sort of. They'd beat you up at britishblades.com for these definitions! Serious knife people, them.
IMHO, depending on how blunt/knacked your blade is, you use progressively finer stones, doubling the number of strokes for each step so you might do 6 strokes on a coarse stone and 12 on a fine stone, etc.
Honing is the second-to-last stage of 'sharpening' and can actually be done on the edge of a car window ("Sorry constable, I was honing my knife when the accident occurred"). Honing helps to get rid of the progressively smaller burr but the final stage is the strop ("No it bloody isn't!" - that was a joke. Hmm...). Use an old leather belt, a proper strop, or even your jeans trouser leg if nothing else is available, and do the thing you see barbers do with straight razors. Strop the blade backwards and forwards plenty of times and it's this bit which removes the burr. It's pretty important as, if you don't, the burr will come off when you use the knife, taking part of the blade edge with it and so it will blunt quickly. One of the best ways to prevent the burr from becoming big in the first place is to 'push' the blade, rather than 'pull' it across the stone.
Frankly, blade sharpening is an art and I'm still learning - I still can't shave the hairs off my arm with my knife when I've sharpened. So, more time-consuming practice is needed.
Try either the BritishBlades or BushcraftUK.co.uk sites for long (winded), in-depth, arguments over minute variations on the above.
Mind you, I'm not sure why I'd want to be shaving my arm...
