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Built-in shelves will increase resale value, assuming you don't want to take them with you.
You should look for a book on shelving - try your library. There are few, if any free plans on the net.
You can use a 1x2 cleat if you plan to trim out the face with something that will cover that unsightly mess.
I'd use MDF only if there's no chance of leakage or condensation. You might consider the advantages of Melanine.
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