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I would definately go with the sail cover suspended a few feet above it myself (set up on rollers like a pool cover say). I would skip the shade-cloth though and use something highly reflective like an aluminized tarp. These come in big sizes and have convienient holes already in them, cheap too! A good shade sail system will prevent the heat from ever getting to your shed in the first place, so you wont have to worry about insulation, fans, etc.
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