Yes, it should be in the basket.
Chemicals for maintenance, as long as you have ozone:
If it is used once a day or less: 1 ounce of MPS before each use. 1 ounce of Di-chlor on a weekly basis.
If it is being used more than once a day: Add 1 ounce of Di-chlor after each use, and 2 ounces weekly.
Di-chlor is the shock.