I did use OSB (particle board) wood sheathing on the inside of my garage. I did
use drywall behind the heater and parts washer for fire resistance.
I also have 2 fire extinquishers readily available just in case.
Drywall is a great fire retardant, 5/8" or 1/2" xxx for fire code.
But drywall in a working garage will take a beating real quick.
I prefer wood so I can stick a nail or screw anywhere to hang anything.
If your garage is attached to your house, USE 5/8 sheetrock. It's the code. 
Rock over wood if you want but be sure there is a fire barrier and fire door
between your garage and living space.
Also, have a fire extinquisher handy along with a bottle of eye wash and a 
simple
first aid kit.
Now let's talk about the fridge, TV, PC, seats (mine are bucket seats) Made 
from a
5 gallon spackle bucket. Great storage and it doubles as a seat.
-- 
Frank Clarici
Toms River, NJ
A few Sprites
http://www.exit109.com/~spritenut
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