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I'd suggest a oil fired space heater, you'll have to run a wood stove for too long to make it worthwhile to work out there in cold weather. A direct fired heater has the advantage of giving you 100% of the BTUs but the disadvantage of some fumes. It will be warm in an hour as opposed to a day.
They have some interesting manufactured panels now that look like T-1-11 and seem to hold up for inexpensive siding.
If you go with vertical boarding, use good corner bracing, studs 2' o.c. and horiziontal blocking 2' o.c. it should work fine, at least it does up here and we usually have bigger snow loads. The vertical boarding counts in reality but not in engineering calculations.
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