ELMONT, N.Y. - Dialed In, who finished eighth as the favorite in the Kentucky Derby, will have to undergo surgery to remove a chip out of his knee and will most likely miss the remainder of his 3-year-old season, trainer Nick Zito told New York Racing Association officials Friday.\r\nZito said that recent X-rays taken by Dr. Joseph Migliacci revealed a chip in the colt's right knee. Zito said Dr. Larry Bramlage will do the surgery at the Rood and Riddle Equine Clinic in Lexington, Ky., next week.\r\nIn a statement, Zito said that he and the colt's owner, Bob LaPenta, &quot;and all my staff were looking forward to the Travers. Unfortunately that will not happen. I am grateful that he was the favorite in the Kentucky Derby and ran in the Preakness for the $5 million bonus. But I am disappointed, along with Bob, that he did not get a fair chance in those races. Hopefully, as a 4-year-old, he will get back to where he belongs.&quot;\r\nDialed In, a son of Mineshaft, won the Holy Bull and the Florida Derby at Gulfstream Park over the winter. He was sent off the lukewarm 5-1 favorite in the Kentucky Derby, but finished eighth, beaten 7 1/2 lengths by Animal Kingdom in a race in which Zito felt he was compromised by a slow pace.\r\nIn the Preakness, Dialed In got squeezed at the start and could do no better than fourth, beaten 4 1/4 lengths by Shackleford. By virtue of his two stakes victories at Gulfstream, Dialed In was eligible for a $5 million bonus offered by Gulfstream's owner, Frank Stronach.\r\nZito had been pointing Dialed In to a summer campaign that was to include the Jim Dandy and Travers at Saratoga. Dialed In recently returned to the work tab, breezing four furlongs in 49.80 seconds on June 18 at Saratoga.