So my first question is about the walls. I live in S.E. Virginia to give you an idea of my seasonal temp fluctuations/concerns. What is a relatively cheap way to wall the room in once insulation has been installed?
I did the same thing, although in my case the garage was already built. I also had poured concrete walls rather than 2x4 construction. I just walled off part of my third stall, giving me a 17' x 9' snakeroom. Not ideal, but I wanted to be able to fit a small vehicle in what was left of the third stall.
Regardless, I think drywall is best. The moisture-resistant stuff might not be a bad idea but I did not use it.
How about the shiny silver reflective material, or the blue sheets of styrofoam? Has anyone ever used this material?
I have used both, but neither is suitable for an exposed material. You'll need to have almost any insulation product covered with a fire-rated product. Foil covered polyiso or another other rigid insulation board is not fired rated and should not be used unless covered with drywall.
What would YOU use if you were starting from scratch?
It really depends on what type of heat you plan to use. Are you running an extension from your home's heating/cooling system? You mention an electric bill below so I'm guessing some sort of electric heat, but it will be helpful to hear exactly what you have in mind.
If you're open to suggestions, I would go with a dedicated system for the room. Some sort of 220V radiant heat system or possibly even a water-based radiant system in the garage floor. I planned on use large radiant heat panels from Pro Products. You can even still see the faint outlines on the ceiling where I mapped their location. I ended up going with a local supplier of radiant cove heaters which have worked fine, but I'm not 100% happy. But they were dirt cheap.
Whatever you use, I do recommend some sort of foil-faced insulation product.
My next immediate concern is the concrete floor. Concrete absorbs heat fairly readily, so Im concerned about heating/cooling issues and the electrical bill it'll generate. Would you consider building off the floor and going with a wooden floor and air space underneath to act as a buffer? But I dont want a wood floor because now I have to deal with water spillage issues. "So put a vinyl flooring product down over that" you say? Nope, now the cost is getting outrageous, plus if you've ever done vinyl flooring yourself you know it's a pain in the butt. So Im thinking just seal the concrete with a garage floor style paint and just deal with it.
I used pressure-treated 2x4's laid flat. I then used foil covered poly iso and laid that down between the 2x4's. The polyiso was only 1" thick so I had a 1/2" air space between the foil face and the top of the 2x4's. I used plywood tongue and groove subflooring and then used vinyl flooring over that. Since it was for a snake room I used the type that does not require adhesive. It just lays flat on the floor.
I live in South Dakota, it gets a$$ cold here. With two, 750 watt radiant cover heaters and a small ceiling fan I'm able to heat the room to 90* (if I wanted too) with the equivalent amps of seven, 100 watt light bulbs. My floor is only 1.5* cooler than my ceiling, despite the heaters being mounted near the ceiling.
Overall I'm reasonably happy with the room. However, I'm not sure I wouldn't do somethings differently. That's always the hard part about consctruction. You don't know what you want until you know what you don't like.
Let me know if you have any further questions. I'm home with the flu and probably left a lot of information out. The one thing I would really stress is learning about your local code. I was new to my area and had to learn a lot in order to do this myself.
Here is a picture. The radiant cove heaters are those tan, rectangular units up nears the ceiling.

