Now that I've discovered White Ensign, Vallejo's kinda become my #2 paint, but I went through a lot of trial and error with the stuff when I was building my Dauntless.
I've found thinning with water to be useless. By the time you get it thin enough to spray without immediately clogging, it comes out all, well, watery.
Airbrush medium has similar problems.
The BEST mix I found, almost across the board, is thinning Vallejo Model Color with Future. Sweet spot is around 1:1, give or take depending on your specific color or airbrush. The stuff will still clog up in the nozzle over time, but a quick dab with a wet q-tip will clear it up. I've found the Future has enough weight to it to keep things from going all watery, and it lays down really well in thin coats.
The other great thing about thinning with Future? Tough, glass-smooth, semi-gloss finish.
Cleanup with Windex, then flush thoroughly with water.
Also, a few caveats based on my experience:
1 - While the Vallejo can do awesome soft edges, I've found it doesn't like to spray fine lines at all. I wouldn't use it for pre or post-shading. Or mottled patterns like you'd fine on Luftwaffe planes. But for major surface colors, it's fine.
2 - Vallejo doesn't reduce very well. I've thinned Tamiya down to ridiculous levels for post-shading and stuff and still gotten fantastic results. Beyond maybe 4:1, though, Vallejo tends to separate in the thinning medium.
On the Bench: 1/32 Trumpeter P-47 | 1/32 Hasegawa Bf 109G | 1/144 Eduard MiG-21MF x2
On Deck: 1/350 HMS Dreadnought
Blog/Completed Builds: doogsmodels.com