I've had pretty good luck on stone chips by using the small brush applied bottles. I clean the chip out ( w/a needle) and put a drop of paint in it. After it dries ( I waited a couple of days), a took very fine paper ( 800 I think) and gently wet sanded the bubble down to the surface with a homemade block sander. Jim Richarson used a similar technique on resto tips My Classic Car. Maybe you can check their website for his expert opinion.
Whoops. RD sorry. I was scanning too quickly, you said engine chips. Sorry.
[This message has been edited by Gene Chas (edited 06-01-99).]