simple question, would I use the same drywall for a living room as apposed to a more moist area like a bathroom or kitchen?

You need to use what is called greenboard in the bathroom as it is moisture resistant and be sure to mud the joints and screw/nail heads with a setting type compound as this will give you the best protection against moisture.

The paint system should be an acrylic primer followed by two coats of an acrylic satin/eggshell finish paint.