Lioke Chris said a local building inspector (although I havn't had luck with any) or a local builder may be better suited to answer your questions than any of us. Save for the similar circumstance that somebody on hear (kingsnake) lives near you and has a similar experiance.



My only advice other than local help, is to remember that house garages and yes even sheds need to breath. Fiber fill insulation uses a vaper barrier that allows airflow but not moisture to travel through. Exterior house wrap does the same, expanded polysterene doesn't do so well.



In our attempts to make things insulated and sustain proper temps and humidity we often take it one step to far and seal the building to much. Weather it be a room or a garage or seperate building or shed. Sometimes we just go to far.



The fact that you are getting condensation and mold is evidence of two things. There is indeed a higher moisture content in the air within the shed and that the airflow is limited.



One of the reasons basements seam so dank and moist is that concrete doesn't breath. With airflow this condition can be lessened.



As far as what you should do I can't say as I have no idea what your conditions may be. I hope someone local can provide a bit more help.



Good Luck
-----
Jeremy



"I am become death, the destroyer of worlds" July 16, 1945 Robert Oppenheimer



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