Are we talking about the typical smooth finished paneling?
B-I-N is about the best primer out there for that, you can throw that stuff onto pretty much anything and it will stick. But it's shellac-based and kinda hard to work with.
Original Kilz is the very good, but you'll be short a few brain cells by the time you're done with it. Use a respirator and have as much ventilation as possible if you go that route.
If it was me, I'd use the Kilz2, it's water based and much more pleasant to work with, but it's just not as good as the original. Make sure the surface is as clean as possible and thoroughly scuff if it's glossy.
And yes, I always used flat paints for all ceilings unless a customer specified otherwise, and even then I tried to talk them out of it.
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