Second, thinning with water makes the paints spray like, well, water. They bead, they run, they separate.
The key is to find a thinner medium that will work with the paint, but that will "cook off" quickly enough to lay it down without running.
My personal favorite is a solution of Future and Windex. The Future will thin the paint, but gives it some "body" when you spray it so it doesn't run everywhere or bead like crazy. And the ammonia in the Windex thins both down quite nicely and evaporates quickly. This mix also gives you a nice semi-gloss finish.