Using Kilz is a good way to seal the surface before you repaint (and its pretty easy, too) However, before you do that, you should wipe down the ceiling with a mixture of bleach and water to kill the existing mold/mildew. (a rate of one cup per gallon water is good for this) Just make sure the ceiling has thoroughly dried before you try to put on a coat of Kilz or paint.
Ken
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