Walls and Ceilings - OSB vs Sheetrock

I am about to cover up the walls on my shop. I have 12' high ceilings. A co-worker suggested putting up OSB for the first 8' and then sheetrock the rest of the way and the ceiling. The advantage being that when you need to hang something you don't need to find a stud because of the huge number of things that get hung on the wall(for heavier items you would use a stud). I was also told that you can mud and tape it just like sheetrock then paint it. The drawback is the cost. Has anyone done this before? Please tell me your thoughts and any other advantages and disadvantages. Thanks

I have never heard of anyone taping or mudding OSB. Other than that it sounds like a good idea. Mostly because the OSB can take more abuse than drywall can. OSB can be painted but should be primed with an oil base primer first.

Personally I would prefer to use OSB for the first 4', then 4' of pegboard with the remainder of the wall plus the ceiling having sheetrock.