Although it seems like overkill, I also use a stationary belt sander for the initial phase of most chisel rehab projects. Keep a bucket of quenching water next to the sander, and don't let the workpiece get hot. I keep the heel of my hand right near the tip of the chisel to hold it flat against the belt. I know right away when it's starting to warm up

. After the coarse shaping is done, I use a Tormek for the bevel, and 220-grit sandpaper-on-glass for the back. Then I finish by sharpening as usual, which is progressing thorugh a series of 6 grits of finer and finer sandpaper, up to 1500. I have a large plate of glass, with all the grits laid out on it, so it goes pretty fast. Compressed air keeps the grit from building up. The finer grits of sandpaper can be found at an auto parts store. All sandpaper should be closed coat (designed for metal work, not wood work).