Everyone talks about cleaning out the garage, or working in the garage, however the garage seems to be the last place that gets organized, or worked on. We always do a room in the house and relegate stuff to the garage. I have reversed the idea. In order to organize the house I started with the garage. That way I know where all the tools are, if something is being kept or moved to the garage it is placed in an organized spot not dumped. This project had a few goals.
1. Store all the tools on one wall. The wet/dry vac and air compressor had no space because they where taller than all the shelves or tables they could go under this had to change.
2. Create shelving to store unused stuff high up and used stuff lower in reach, and get often used tools out and available without being on the workbech.
3. There may not be anything on the workbench. It is sacred, and to often used as the only storage spot forcing projects to be completed in the kitchen or my office.
4. Have a small monitor and ethernet port for computer repair and building, no more working on electronic projects in the house.

I have achieved all of these. creating this space

I started with a blank wall. Screwed a half inch by three inch strip along the top of the wall into each stud. Then I ran the same 3" strip down the wall every 24.75" and finally a strip along the bottom.
I installed the gray steel Closetmaid system on the wall. This is the stuff with a steel header at the the top of the wall that you connect metal brackets to which in turn hold the actual shelf hangers. The down brackets where screwed into the wood in three spots to keep it extra strong and not moving.
Between each slot I installed a 24" x 8' piece of factory primed pegboard. The peg board is stapled in with a crown molding staples. You should screw peg board in but I am not going to be using it for heavy loads, thats what the heavy duty shelving is for.

Once completed everything just snaps in. Giving everything its own place. While my laptop is and a few things are sitting on the workbench it is normally kept completely clear allowing me to start and finish projects quickly.

If you are wondering I am using those $1.00 shoe size clear plastic tubs from Big Lots to store all the little stuff.

Photos of the process

If you all want more detailed instructions let me know and I will draw out the basic setup.