will fisrt off if you want to use the chips just put them in a bag and palce them into the cavity of the filter. that being said why don't you try and do WC's to bring those levels down, I have the feeling that is a new setup and you already fully stocked the tank without letting it cycle. you going to have to do daily WC's anyway because the chips will not absorb enough to make the water safe for you fish.
Agree with djrichie - ammonia removing agents (in general) bind up the ammonia and make it unavailable for the nitrifying bacteria that need to grow in order for the tank to be "cycled" and to be a healthy place for your fish. This takes weeks and weeks to happen in a new setup. If you are not familiar with cycling an aquarium, if you google the term you will get a ton to read about it.
I believe that Prime (water conditioner) detoxifies ammonia but the bacterial colonies can still utilize it - this is what they claim.
You could also get some BioSpira, which contains the actual bacteria that the tank needs, and that will cycle your tank in a day or two, when used properly.
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