Painted the ceiling beside Kilz primer & in a minute it's bubbling basically contained by 1 spot-why? How should I operate near this? The paint we are covering is latex and the paint we are...

The paint we are covering is latex and the paint we are using is also latex so that shouldn't be the problem.. My plan of attack at this point is to let the nouns dry, then sand it and repaint it next to the Kilz primer before I cover the entire ceiling next to the ceiling paint.
Answers:    I agree with your plan.
But if it doesn't work you may enjoy to smear a very lean coat of drywall compound over the area. Let it dry over-night, sand and next primer and paint for a guaranteed finish.
If it's bubbling only contained by one spot, there's a good accidental that it's getting wet from above.