Kilz is pretty cool. I prefer the water-based type for easier cleanup, but I did have to use several coats of it to cover up the waterspots on the ceiling in our mudroom (the roof leaked.)

Colors, are hard for me to advise! I love the textured Ralph Lauren paints that they have out, that have the look of faux leather or stone.. but they're pretty expensive and do take some talent and learning to apply. But they're awesome when done, from what I have seen.. I do like the idea of a slate-gray trim and a lighter gray wall; because I hang alot of things on the walls, and it'd make them stand out better, personally.