I can't give a good answer on the sound insulation factor - but my shop is finished with OSB. I painted it flat white (I didn't want dust and dirt to show too much) - and I love it. With OSB you can drive a screw anywhere you want (to hang "stuff" up on). My previous shop was finished with drywall, and while it was "OK", I couldn't simply drive a screw anywhere I wanted (well - I COULD, but I had to go through the whole drywall anchor thing).
Best of luck to you.
I love mankind. It's people I can't stand.