I'm hoping that someone on here can help me with an issue I have building my new shop.  My wife has graciously allowed me to build my shop outside on a concrete pad that was originally there for a hot tub.  The issue I have is that the concrete pad is directly under a part of my upper deck that is covered.  The issue I'm having is I don't know how to do the roof in my shop.  If I take it all the way to the upper deck then I need to waterproof it.  I have no problem waterproofing it, if that's what I need to do.  But if I do waterproof it how do I connect the walls and roof of my shop to the upper deck???  Not sure if this makes a lot of sense so I drew some pictures and tomorrow when it's light out I will take some actual pictures.
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Is that deck an open deck.. not a solid plywood deck?  My first thought would be to add a layer of plywood as a new topping of the deck. Then seal the ply with poly or something.

  Maybe put down a rubber roofing layer they put down to waterproof under shingles between the existing deck wood and the layer of ply on top of it.

Running a 2x ( a header for the wall) along the outside edge of the underside of the deck will allow you to nail the wall studs in place.
Are you going to run a bead of sealer and then shoot a sill into the concrete for the base of the wall?

What are your plans for the floor of the shop? Are you going to waterproof that as well so water doesn't migrate up thru the concrete?

At least where it is, you can use a very low angle roof, most of the precipitation will be handled by the upper roof.  You will either need to waterproof the deck to use it as the roof, or leave enough space under it to allow roofing materials to be applied to a lower roof.

I hope you have gone to your local building department for all necessary permits.  I had a tax client that was blocked from selling his house because additions had been made without permits.  Took him over 4 months to get the necessary permits, inspections, and pay back taxes before he could start looking for another buyer.

Jim-- I have not looked into permits yet because I'm not sure how the addition is going to go (how I'm going to do the roof and such).  Once I have a definitive plan I will obtain all the required permits.

My dirst sugestion shane is contact your cities building division and ask as many questions of them as you can. It looks like an okay spot for a shop however there would be a lot of time money, involved in making it right. I would deffinitly put some sort of roof inplace under the decking.

As to the basement this it the route I personaly would go. No mater where your shop you will get dust in the house. From the sounds of it you will be putting up a wall so in theroy have a fairly contained area. Then get an air box ( celling airfilter ) and install it. Much cheaper in the long run I have all my stuff in the basement and it isnt horiable in the house for dust, but like I said it gets everywhere anyways keep us posted. If I have any other thoughts I will post later.

The other thing that will help alot is to get your wife interested in turning as well. She'll be more forgiving of dust when she is in on making it.

if you go for the basement, seal every crack and hole you can find using either caulking or expansion foam. the more you seal, the less dust gets out.

Jim-- I don't really have access to the joists in the ceiling because it's already finished.  I am going to have to make some wholes because I have to wire it up for more lights and a receptacle for the air filtration system.  The other reason I would rather not pull all the sheetrock down is because my ceilings are right at 13' tall and I'd rather not have to hire someone to do my ceiling.  So, with that said, what would you recommend?  Oh, one last thought, the location where the shop will be located in the basement has an AC vent; should I close that up, or would it be ok to leave it open?