Painting - Kitchen wall project sequence

I'm preparing to complete the walls in my kitchen- I recently had the old tile counter and backsplash removed and replaced with Corian and the subsequently damaged drywall replaced. The plan is to add some new tile above the backsplash (maybe mid-way up the walls) and under the cabinets and then paint the remaining wall surfaces. At this point the drywall seams aren't very smooth and the untouched areas of the wall need some smoothing also so I know I'll start by sanding and roughing up the old paint and skim-coating, but what should the next step be? Priming/painting and then tiling, or doing the tiling and then the priming/painting?

I would prime walls, put on 1st coat of paint, tile then put on 2nd coat of paint.With the 1st coat of paint on walls use painters tape near edge of tile so you dont get the grout on the 1st fisrt coat.If you do just lightly sand and put 2nd coat of paint on.