First of all, any kitchen wall surface should be scrubbed with TSP before painting. (Tri Sodium Phosphate, and FOLLOW THE PACKAGE INSTRUCTIONS). Most paneling has a gloss finish which is not condusive to paint adhesion, so at the very least you should primer the walls before paint. You also might consider using a power sander and roughing up the surface with a 80-100 grit paper, changing paper often.
Your paint should be of good quality, not cheap. considering 1 gallon should suffice, paying an extra $6 for the "good stuff" is worth the effort of application, and the ease of use. Go to Sherwin Williams, or another specialty company, not one of the "big box" stores, and explain what you are doing. They will walk you throught the whole process, and make sure you have everything you need. The big box employees will just sell you the paint.
Go with a semi gloss in the kitchen, its much easier to clean.