I have used wind screens with alcohol stoves with great success. Is there an issue with using a wind screen with canister stoves and overheating?

I agree with the 3/4 windscreen concept, and doubled heavy-duty tin foil is a good flexible option. You don't want to enclose the whole whole stove. Even if you're not concerned about canister explosions, you can damage the valve seal in the canister with too much heat. And these stoves need all the oxygen they can get, especially at altitude, to burn efficiently.

Bryan is correct. You need ventilation around the fuel canister & it should never be enclosed for fear of overheating & a possibility of explosion. Case-in-point, the Jetboil & MSR Reactor systems.

On any canister stove it is always recommended and cautioned that a windscreen should NOT be used because the fuel is inside the windscreen and could heat up and explode. There are a couple stoves that have windscreens attached to the stove element and therefore not trapping heat with the canister (Primus has one) but typically you will never see a canister stove come with a windscreen, which would be the first clue that you shouldn't do it. A wind barrier blocking the wind from a foot away or so would be the best option.

No not at all. I usually just use a few layers of tinfoil mushed together which can then be folded quite small and stored in my pot or pack. Usually though I only use 3/4 windscreen which means that the foil vertically only goes up to just past the bottom of the pot and does not wrap around the entire canister/stove/pot which leaves me access to the handles. Where the foil is open on the one side is where you sit so your body becomes the last 1/4 of the windscreen. I will try to post a pic for you.