Hi btp,
It looks like a nice compressor. I used a badger compressor similar to it, for years. I added a moisture trap to mine, but here in Kentucky, when spraying on hot and humid days the trap would fill with water quickly; soon the water would spray out along with the paint. I had a second trap in my hose as well, and it didn't help much.
When I lived in southern Arizona, I had no trouble with moisture in my line. :)
You might consider looking for a compressor with a tank, or getting a compressed CO2 tank and regulator. That's what I have now, and I love it. The only problem I have with the tank is the danger of transporting it.
The hose looks good on the HF compressor, but you might consider getting a braded one later on, they are sturdier than rubber/plastic hoses.
Good luck!