Dan,
Almost flat but slightly sloped garage ceiling? Just the exposed 2x6 joists/rafers and the underside of the roof sheathing? And all that 'ceiling' is (badly) painted white, and the paint is now peeling? And the only thing above the ceiling' is the actual roof?
Got a picture?
First off, how old is that building/paint? If it goes back to the 1978 or so, you may very well be dealing with lead paint. Uggg. If the building/paint is newer than that, you-should- be OK from the lead paint aspect. Check if you are not sure (I think H-D and such have a DIY lead paint test kit).
http://en.wikipedia.org/wiki/Lead_paint
Moving on past the possible lead paint.
If my understanding/description of the layout is correct, then you really can't/shouldn't just put up insulation panels on the bottom of the roof/ceiling rafters.
If you do that, without putting in soffit and peak ventilation, you would just trap heat and moisture between the insulation panels and the roof sheathing. Which would cause the sheathing and the roofing (notwithstanding tile roofing) to rot and/or deteriorate -much- faster.
And it's your 'space' and all, but leaving exposed foam insulation panels in a garage (or anyplace else) is soooo against Code. Fire hazard.