[HoE] Nit-Picky Chip Use Question

[Matt and Teresa Steflik <grifflik@stny.rr.com>]

Pretty basic point here (and I feel a bit ashamed for bringing it up),
but it's a minor debate with a player over wording interpretation - help
me out.  On page 109 of HoE main book under "Savin' Your Skin" it
states:

"Spending a Fate Chip doesn't make wounds "heal" or stop an attack.  It
just reduces the effect or makes it so it never happened in the first
place."

It then goes on to say how spending a chip "negates" damage.  If enough
chips are spent to "negate" all of the damage from an attack, is the
attack considered a miss (never happened) or an ineffective hit (reduced
effect)? Is it one or the other, or both on a case by case basis (told
you it was nit picky, but we're dealing with abilities that work on
"contact" with a target that don't necessarily involve damage...hence
the debate)?  The way we've been playing it is that negating all damage
is considered a flat out miss, and "reduced effect"  is simply in
reference to when all the damage cannot be completely negated.
Otherwise "never happened" _could_ be interpreted as effectively
"stopping an attack", which the book clearly states Fate Chips do not
do.  I'm thinking my interpretation is correct, but I've been wrong
before and I just want to be sure (and put the stupid point definitively
to rest so we can move on).  Again, any input appreciated and  thanks in
advance.

Matt Steflik
Gimme Shelter - http://www.geocities.com/grifflik/