Faux Finishing - distreesed furniture

how do i create a shabby chic distressed look on furniture and what type of paint should i use

You don't tell us exactly what you want or what you're starting with. There are many ways to distress furniture. Let's say you want the look of worn white paint. First sand the furniture to establish a "tooth". If the furniture has been painted with oil paint or varnish previously, you will need to use an oil paint or else you will need to use a primer for oil/latex paint before anything else.

Now you could paint your furniture with black paint (or use another color). When dry, rub a candle over the high spots, then paint with white paint. The candle wax will resist the white paint, letting the black (or other color) basecoat show through. This is one way. If you post a clearer description of what you'd like to achieve, I'm sure someone will give you some specifics.