linoleum, good. im paranoid about wet wood. but many others do just fine with wood enclosures.
well if you water as much as most of us do youre going to end up with puddles in the bottom. but considering the set up you have going on you could easily drill a couple holes in the bottom and put a basin in the cabinet below.
otherwise youll be mopping up puddles with a paper towel and thats a pain in the butt
how much did you plan on watering?