A friend of mine has a paint chip about the size of half a dime on the hood of her accord. Can this kind of damage be fixed with touch up paint?

note: the chip has been there for quite some time now, so its kinda rusted

 

Moving to Car Talk.

And I'm pretty sure there's a "tutorial" on fixing paint chips in the FAQ list (in the library?). At the very least, you'll want to sand all the rust off before applying any paint. And with a chip that large, I imagine the repair will still be obvious if you only use touch-up paint.

 

Ed,

Rick Hesel used an airbrush to fix his paint chips. He wrote up a post on how he did it. It might be easier to do than using a brush. I know some repair shops will come out and airbrush a car too. Not sure which ones though.