Shed insulation

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putting cladding over the insulatiuon would certainly help, it is not very strong and might make dust if knocked. Cladding will also look neater. Ply is more bump-resistant, but not fireproof like plasterboard.

The condensation problem should be addressed by ventilation, and normally putting a vapour barrier on the warm (inside) side of the insulation under the internal cladding.

Luckily you can make extra ventilation in a wooden building using nothing more complicated than a drill.

I would have thought a wooden cabin would have enough draughts to keep the cavity ventilated though.

Most heat is lost through the roof, so insulate that especially well

p.s. have a look in your local DIY shed and builders merchant to find the cost of insulation. Remember that for the same thickness, rigid foam board is better than polystyrene, which is not much better than fibreglass (though I prefer the white quilt which does not make irritant fibres or dust)
 
@johnD

cheers mate thats a great post, may just go with some cheapish insulation and some ply or something simlilar over the top then, as like u say its already quite drafty!!!
 
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