Editing Air compressor silencer

I am currently building a device to eliminate the loud noise from a air compressor:

1) Frame in your air compressor with 2x4 construction in a permanent location

2) Cover interior walls with peg board or wire mesh (I used peg board it was cheaper)

3) Cover all sides with foam over the peg board (I used 1 inch thick)

4) Cover all exterior walls with peg board so you can hang your tools on outside

5) Place rubber mat on floor for the compressor to sit on to cut down on vibration  

6) I made mine with a door in front for access 

I found that if I took the compressor out of the shop, it was less noisy. I built a lean-to on to the shop and just passed the electrical cable and the air lines through the wall. In summer, I just open the two opposing windows and let the breeze cool the compressor. In winter, I keep the windows closed until the compressor is in use for an hour or so, and then open them slightly for ventilation.