Use treated wood for re-framing. You need to make certain that the sill is angled so that the water runs off into the tub rather than sits on the sill.
If you want to use ceramic tile, then you need to make certain that everything is waterproof, as water does get behind the tile through the grout joints. I would consider using a thick plastic membrane under the concrete board such as the membrane that is used to make shower pans.
An alternative is to use a paint-on waterproof membrane that you paint on the concrete backerboard after it is installed. Ask at the tile stores and they will recommend a product.
One of the problems with using ceramic tile in an existing window is that you need to have enough room on the inside of the window casing so that the backerboard/tile combination does not interfere with the window opening and closing.
The most reliable (and quick to install) waterproofing is to use Corian as the window sill and window casing material.
Use silicone caulk on all the joints around the window. Don't forget to put a good slope on the sill for water runoff. Also slope the horizontal casing at the top of the window so that moisture flows toward the tub and not back toward the window.