Hi Northern Timber,
Sharpening is the first skill that a wood carver has to learn, if you want to enjoy carving. As you have already found out, there is nothing that will turn off a new carver like dull tools. A sharp knife is a joy to use!
There are all kinds of sites and books that will teach you the finer points of sharpening , and it sounds like you have a good start to the necessary equipment. The dual stone is probably (I'm guessing) a 1000/4000 grit stone. That is good for shaping and one step in the honeing process. I would recommend a 8000 stone for final honeing before you move to a leather strop with polishing compound (Green or Gold are my preferances.).
The process just takes practice and consistancy. The books or sites will tell you the angles for various cutting tools, but it takes practice, practice, practice, to get it right. The Japanise stones have to be soaked in water first, for about five min., and then used wet, and kept wet. Your blade will form a fine 'slurry' as you stroke it, and the slurry is what helps sharpen the blade. Once you have the shape you want on the coarse stone, move to the medium stone to hone, then fine and then polish or strop with the leather and compound. Unlike the stones, you draw the blade along the leather (if you push it forward it will cut into the leather).
Once you get the edge you want on the blade, all you will have to do it touch it up once in a while with the leather and compound, unless you drop the blade and nick it, or lend it to some stupid friend to open a beer can with!!!
As for the tools you mentioned, they are a good beginning. You don't need a whole house full of expensive tools to enjoy carving. As you find the shapes and angles that you work with, you will discover which gouges or knives/chizels may be useful. Buy carefully and prudently, invest in good quality sharpening stones and a good book on basic carving and sharpening. Big sets of carving tools may look great, but 3/4 of them will go un-used.
Besides, you will always have something to suggest to family for Christmas or birthdays.
Good luck and happy carving,
Bob