Data, with the chip, has a full range of emotions.
Data, without the chip, is limited to emotions that stem from the higher thought processes. The chip is the equivalent of what some (probably older) psych texts refer to as the "reptile brain". Data was, ultimately, capable of becoming angry or upset enough to kill in "The Most Toys", but only because it was the rational conclusion to an emotional process carried out on a thinking level. Data was capable of missing Tasha on a thinking level, but never cried over her (unless he did after he put the chip in) like he did with worry for Spot when the -D crashed.
The chip makes sense to me - even why Soong might have concluded that having those functions from the start may have been what caused Lore to be a jerk.
I just think no one was speaking quite accurately when they said Data had no emotions before the chip. It was understandable shorthand, since specifying and explaining that he had higher emotions but no basic feelings would have been tiresome and also detracted from the whole "becoming more human" goal that Data had.