Everyone has given excellent advice about your compressor, but so far no-one has answered your question. BTW I have the same airbrush you bought, I purchased it an a lark to see if it was any good. It isn't, really. Mine came with a vinyl hose that was worth the purchase price, though.
To fully understand airbrushes, you will need to understand the basic differences in airbrushes.
Mix:
External mix airbrushes like the Paasche H or Badger 350 atomize the paint outside of the body of the airbrush. Excellent for flood coats and easy to clean.
Internal mix airbrushes like the Paasche V or Badger 100/200 series pull the paint into the body of the airbrush where it is atomized. Typically these kinds produce a finer finish, though require more care and attention during cleaning, as paint left inside the body will cause obvious problems.
Feed:
There are three kinds of paint feed for airbrushes: Siphon fed, Gravity fed and less well known Side fed.
As previously pointed out, siphon airbrushes don't work well (or at all!) at low pressure, as they need sufficient airflow to suck the paint up from the bottle, let alone atomize the paint. Siphon fed internal mix airbrushes are a bit more trouble to clean, as you have to clean the bottle or color cup, as well as flushing out the body to insure that paint doesn't clog the works. Siphon fed offer more choice in the quanity of paint, as you can either use a little bit in a color cup, or you can attach up to a 3 oz. bottle. Anything larger than that will be difficult to use properly.
Gravity fed require only enough airflow to atomize the paint, as gravity is all they need to deliver the paint. A bit easier to clean, as the cup in integrated into the body, but they are limited to the cup size.
Side fed airbrushes are somewhere between those two. Those only require a bit more air pressure than is required for atomization. Cleaning is on par with siphon fed, and you are limited by a single cup size.
Action:
Single action require setting the needle or paint cone, and then depressing the trigger to start the airflow. These allow for very consistant spray patterns, but can limit a user as the paint is either on or off.
Dual action uses the same operation for airflow by depressing the trigger, but you contral the volume and pattern by pulling back and forth on the trigger. A little bit like patting your head and rubbing your stomach, it requires a bit of practice. The advantage is you can spray a hairline and gradually increase the width to a full on flood coat.
Still here?
My airbrush experience is with Badger airbrushes, and I never hesitate to promote them. They are high quality, affordable, and Badger backs them up with a lifetime labor warranty. Other makes such as Thayer and Chandler, Paasche, Iwata, Harder & Steenback, DeVilbiss, Richpen, and Peak all offer various configurations at various price points and all have their fan base. I do suggest buying a "brand" name rather than a clone. They just work better and parts and service are available. Note that Thayer and Chandler is owned by Badger and offers the same lifetime labor warranty.
Badger's Garage Sale has some excellent deals on airbrushes. If you insist on a single fed, I suggest the gravity fed 200GIL for $46. The smallish color cup appears to be too small for use, but you will be surprised at how little paint you really require for a good coat. I recommend you seriously consider moving up to a dual action airbrush such as the Side fed 100LH or RH (Left or Right hand) for a mere $30.80. Unfortunately they are out of stock of my favorite airbrush the 100LG, but those can be found at Coast Airbrush and other online retailers.
Good luck on your purchase!