To be clear about the difference between determinism and chaos in physics it helps to have the idea of a dynamical system for it is in these terms that both chaos and determinism can be easily defined.

A dynamical system is a system in motion (a ball rolling, a star evolving, a sound wave propagating I'm sure you get the idea). Its motion (the systems) is governed by a set of equations (in the former examples these could be respectively Newton's equations of motion ; The diffusion equation coupled to equations describing nuclear burning and hydrodynamic equations {stars are complicated}; hydrodynamic equations) Just think of the state of the system as being a position in some "state space" or some "phase space" The system moves around according to the equations.

Determinism:
If you can use the equations of motion to calculate where the system will be in the state space given as information only where the system currently is then the system is deterministic. Determinism can fail in two ways, in practice and in principle. All systems we know fail practically because we are unable to measure exactly where in the state space a system is. This is because of errors in measurements and the large numbers of degrees of freedom involved in even moderately simple systems. Think of trying to keep track of all of the particles of air in a room in which you wanted to calculate the speed of sound. Pierre LaPlace a French mathematician once said that if he knew the positions and velocities of all of the particles in the universe he could know the future by using Newtons laws of motion. In practice he could never gather all of this information but determinism can also fail in principle.
In Quantum theory the uncertainty principle sets a limit on the amount of information that we can have about any system irrespective of our ability to measure the system. Due to this principle the world is not deterministic. (this is a point that many philosophers seem to have allowed to slip them by in since 1923(4)?, as it makes a discussion of free will of academic interest only (but then again most philosophers are academics and these are the questions that they should be interested in :) ))

Chaos is independent of determinism. The definition of a Chaotic system is a system in which you start with two positions in state space that are as close together as you like , as you apply the equations of motion of the system the two paths in state space diverge. They move away from each other.

Alternatively an stable system is one in which adjacent points in state space remain together as you iterate them in time with the equations of motion.

One might call a system in which all points in state space converge a pathologically stable system, however it is quite common behavior as friction will tend to do this to a system, but that leads one into a discussion of thermodynamics.