Bathroom remodel help!?

-i just bought my first house and i am looking for a cheap but correct way of redoing the bathroom. today we took out the existing toilet and chipped up the linolium or vinyl tile floor. there was a small bit of moisture from over the years the hose in the garage had a slow leak and the water dripped through the cinder block and settled into the bathroom. it has a musky smell and i wanted to give it a fresh look.. fresh paint, new tile, new toilet, new everything..



so my question is: with the glue residue that is on the floor, can i paint over it with KILZ gold sealer and let it dry then lay the laminate or peel and stick tile i got over that? i want to seal the concrete, kill the moisture and mold, and give myself a cleaner surface to work on. is this wrong or right? suggestions?Also, consider PEX if you want to replace the supply pipes. This morning I heard a sound under my bathroom that sounded like a sprinkler...it was...my copper supply pipe sprinkling my crawl space with h2o. Eventually I'll fix all that crap with PEX, but I'll solder a repair pipe over the leak in the meantime.
I'd say go to Lowe's and ask someone there - I wouldn't trust a potentially expensive mistake to a bunch of goons on Yahoo! Answers. Especially because it's difficult to fully explain an issue in just a few sentences.
Is the surface relatively smooth? I ask because over time both of the materials you mention will 'relax' and whatever surface problems underneath will be seen...especially with a cheaper/thinner type.
Use tile glue when putting new tile down just go over the glue that is already there. As for the mildew wash it down with bleach.