Jon,
That, if you scrape off Porter-Cable and replace it with Husky, is my compressor, and it works very well. Airbrushes are not particular where their air comes from, as long as it is dry and oil free. It's noisy as can be, which is why I pipe the air into my man cave!
I recommend a dual action, gravity fed airbrush. I have single and dual action siphon fed and dual action, gravity fed, and I wish I have started with that last one straight off. Gravity fed airbrushes are a bit easier to clean, and use lower air pressure which allows for finer control and less over spray. The dual action (press down for air flow, pull back for paint, the further you pull back the wider the spray pattern) is a bit trickier than a single action (push down for air, pattern controlled by adjusting the needle mechanically), but not that much trickier! The nice thing about single action is the ability to dial in the spray pattern, which gives you extremely consistent line widths.
There are many excellent brands out there, and my first recommendation is always Badger airbrushes, as they are made in the US and their customer service is top notch. I have their 100LG, though their 105 Patriot is also good (both around $75 online). Their Renegade Velocity is excellent, but at a slightly higher price ($100). The Paasche Talon is also very good (around $80 most places) as is the Iwata Revolution CR ($75) or Eclipse HP-CS ($120). All prices quoted are from Dixie Art and the Badgers include free shipping within the US! Add $10 for shipping of the Paasche and Iwata.
All are available at most online retailers. My suggestion is see who can supply parts locally (needles get bent, and washers lost) and buy that brand.
You'll need an air hose that mates up with the compressor which likely uses the standard 1/4" NPT connection. Most brands can connect directly. I have a "airbrush" hose and a "pneumatic tool" hose and use quick release connectors to switch between them. my airbrush hose has an inline water trap, and I mounted a regulator on my spray booth to adjust the air pressure.