I presently use Norton waterstones (up to 8000 grit for the final polishing pass), but diamond stones are well worth considering as well as they have come down in price over the years (a coarse diamond stone us also ideal for flattening waterstones). I have also, occasionally, used sand paper adhered (by water surface tension) to a heavy granite machinist stone (about as close to perfectly flat as one can reasonably get).
If you do choose to go diamond, buy a quality brand and not on price alone as some economy stones have undesirable imperfections. Diamond stones come in two major grades, the cheaper polycrystalline, which will wear out much faster, and the more expensive monocrystaline, which wear much more slowly and have a greater service life -- so when comparing prices it is important to keep in mind which type of diamond crystal has been used in the stone, especially if you will be using them heavily.
I very much like the Veritas Mark II sharpening jig for consistent sharpening results as it makes consistency so much easier (I don't sharpen often enough to do a satisfactory job by hand alone, though some can). I really think this is one of the best jigs for sharpening most chisels and hand plane irons ever invented (my $0.02).