Are you leaving the garage door and refinishing the outside of the house, or is this just a make shift room.. I suggest just building a 2x3 wall, throwing up some sheet rock, paint the cement and go from there if its just a make shift room, spend as little as possible, you will enjoy it just the same... Now if you are pulling permits and doing a mjor remodel then yes, acoustic panels, and insulation would be a great idea..
I tend to take theater sound much less serious then music listening, to me as long as there is enough bass, the fronts are not fatiguing and sound terrible, and it is properly tuned and balanced, the movie will be easy to get in to... What you describe doesn't sound like any huge issues to me, build it and enjoy it... Someone on her just did a nice garage theater {I believe his name was "horrormovie" or something like that, the room looked great, should be within the last couple days if you do a search...
good luck, and dont forget to post some pictures and more questions when you are picking gear...
PS welcome to audioholics