First of all, I have a small 1960's house with laminate countertops in the kitchen. The countertop has a 4" lip that extends up the wall into the backsplash territory.

I am planning to paint the countertop using bonding primer, high quality paint and then acrylic to seal.

The backsplash will be done with heavy natural stones that are on a mesh backing.

I am thinking I should install the heavy stone backsplash before the countertop as tools, pieces of stone, etc. could easily fall down on the newly painted countertop and ruin it.

Any suggestions? Ideas?

Also, I have been told to leave at least 1/8" gap between the bottom of the natural stone pieces and the 4" lip of the countertop. Should I do that? And, if so, should I fill it with caulk?

Thanks in advance!

Wow, you are spending big bucks on stone backsplash but not on the counters?
OK... but lost $$ in terms of resale value.
Anyway, yes, install the stones before you paint (still am dubious about paint) because you have to grout too, and grouting can a be messy job.
Yes, caulk the edge to allow for a tiny bit of movement of the house, cabinets, etc. Everything made of wood expands and contracts and at different rates. Not more than 1/8" gap though or you will see it too easily.

I want to thank all who offered their valuable advice! I'm seriously re-thinking the countertop/painting idea now. I've researched the epoxy alternative and am pondering that one too. Don't really want to go the route of Rustoleum because a friend used that and the smell was overwhelming and probably toxic. I have small pets who would be in danger with that stuff.

My original plan (before I got sidetracked with painting) was to find a local supplier of granite (and other natural stone) countertops and see if they have any remnants that would fit my really small kitchen--about 19 sq feet. They would probably cut it for the sink for me. Will be looking into this as well.

Again, thank you again! I'm so glad I found this website!