Arkansas's are finishing and touch up stones. Same with hard ceramics like spyderco's. India's and Crystalon's combo-stones can regrind and finish almost any pocket knife. Crystalon's more so than India, but they wear quicker than india's. Be prepares to lap them. Diamonds cut anything and everything just don't use excessive pressure. Waterstone are a whole nother beast. Save those till you have the basics down with something a little more stable. They wear a lot quicker, create slurries and muds that that can speed up or slow down cutting speeds, increase or dull the apex, then there is how wet or dry they need to be for the steel you are working with or the polish you want. Not to mention that they all act a little bit differently.
Any stone can work with water or water and soap. The arkansas, crystalon, and india stones can work with oil if you want to. If the stone is pre-oiled (like the india's) or has been used with oil before, then use the water and soap mix. This will stop the stone from glazing till the oil is washed out.
Just remember that you can get a sharp edge off any stone. Doesn't matter grit. The grit is just for refining it to the finish that works best for your task and steel.