Kilz primer is a good choice to seal in moisture, then you can use whatever paint on top. Don't know about any guaraunteed chip-proof paint, but I would say any enamel is a safe bet.
If you just want to varnish/stain the wood (cabinets, canopy etc.), don't use any oil-based products because they are not as durable and may give off fumes for weeks. Instead, use any water-based sealant like varathane.
edit: I mean to say Kilz would keep moisture out, not inside to rot whatever material you are using! I agree, Either paint or varnish only (not both) as mentioned by chin_lee.
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