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Allright, so a thread about DA robed marines being cheaper than an actual set of marines gave me the idea to put chosen on my list should it reach 1750 points.

what are ideal ways to equip them at 1750?

Depends on the rest of your army.

The most common way to equip them is with a bunch of special weapons in a Rhino. All of the special weapons have their supporters, but most people like to take 4 or 5 of the same weapon, and make them exceptionally good at killing their "chosen" type of target. 5 meltas, 5 plasma guns, 5 flamers; all are good, strong options, depending on what you expect to need to kill.

The two main ways to USE them are Outflanking or Rhino Rushing up the middle. The latter tactic is mostly used by people trying to overwhelm their opponent with the sheer number of Rhino squads they have. In addition to Troops in Rhinos, they may also run Havocs in Rhinos, with 4 special weapons each. This kind of army has a LOT of deadly, short range shooting. But it tends to be a bit low on scoring units, as so many points get spent on HS & Elite.

Outflanking is a bit more common. It gives you a reasonably effective unit with which to threaten your opponent's backfield. Chosen equipped with meltaguns are often good at killing enemy shooty tanks hiding in the corner away from the rest of your army. Chosen equipped with flamers are good at killing enemy infantry trying to camp on/hold objectives in cover. Pathfinders in a wood, or SM Scouts with camo cloaks going to ground in a wood, have a 2+ cover save. But flamers don't give a darn about that.

When I've used Chosen like this, I usually run a squad with a near-even mix of meltaguns and flamers. 2-3 meltaguns is usually enough for a reasonable chance of a dead tank, and 2-3 flamers is enough to roast a squad of Pathfinders or deal a good number of casualties to and cripple a squad of scouts.

The bigger question with outflanking Chosen is whether to take Rhino.

Cons:
1. The Chosen have to Outflank IN IT if they Outflank, preventing them from assaulting the turn they come on.
2. The transport is another KP; in Annihilation missions the Chosen can wind up being a liability if they drive on, kill one enemy unit, and then give up two for themselves and their transport. You can mitigate this a bit by giving the Rhino a combi-melta, however, to give it a chance of killing a vehicle itself.

Pros:
A Rhino greatly extends the threat range of the Chosen as they come on to the table; driving 12" and deploying 2" makes a total threat range of 27" with meltas; or 21" for double penetration dice. Whereas walking on you're only looking at an 18" threat range, and only double dice against something within 12" of the edge.
A Rhino can be a threat of its own, either tank shocking or with a combi-weapon. Allowing you to potentially attack up to three enemy units with a single Force Org slot the turn they come onto the table.

A less common setup is a larger squad (8-10) equipped with some close combat upgrades, and probably an Icon. Most players prefer to spend those kind of points on Troops units, which can hold objectives, but a unit of Chosen like this can be a significant threat to the enemy backfield.

A combo with some potential is to include an icon or a single aspiring champion in a chosen unit, to allow the chance of summoning Lesser Daemons or a Greater Daemon from the squad. This, unfortunately, is fairly unreliable, because you are reliant on the luck of the dice working out just right to get your Chosen squad out of Reserves before the daemon/s appear. If it does work, you get a scoring unit or a monstrous creature in the enemy backfield, which is pretty awesome. But the relatively low percentage chance of success makes most people not bother.

Mannahnin is spot-on.

My preference is for weapon spam as opposed to a more versatile squad--four meltaguns and a combi-melta will shred anything you shoot at, within reason. In addition to tank-sniping, you can make your points back firing at low T troops that rely on good armour, multiple wounds, or both--lascannon teams, broadside suits, obliterator squads, vanilla devastators (although these will almost always be in cover), or even meganobz in the right circumstances.

I almost always use a rhino, for reasons Mannahnin has stated.

One last thing: if you intend to use them to bring daemons onto the board, you're probably going to want an ablative wound or two, which increases their cost, but generally ends up being worth it--a greater daemon in the enemy's backfield is one of the most hilarious things you can do to an enemy, especially since you're mostly an assault army yourself.

Awesome advice guys. I appreciate it. (Time for me to build more marines now!)