What is the meaning of "va'Yhi v'Shalem Suko"?
Radak (from Shocher Tov): Then, His Sukah will be b'Shalem; the Beis ha'Mikdash will be built. Shalem is Yerushalayim - "u'Malki Tzedek Melech Shalem" (Bereishis 14:18). Shem ben Noach called it Shalem, and Avraham called the Beis ha'Mikdash Yir'ah - "va'Yikra Avraham Shem ha'Makom ha'Hu Hashem Yir'eh" (ibid., 22:14). Hashem said, if I will call it like Shem did, I will nullify Avraham's words. If I will call it Yir'eh like Avraham did, I will nullify Shem's words! He called it Yerushalayim (based on both of them).
Malbim: The masses dwelled in Yerushalayim. There was Hashem's Sukah, i.e. provisional dwelling.
Why does it say "u'Me'onaso v'Tziyon"?
Radak: Tziyon is the place of the king.
Malbim: This was a fixed dwelling of the king, Sanhedrin and Kohanim - the Mikdash was there!