Regulators do fail and are not that expensive to replace. I think I recently priced one at Lowe's in the $30 range, and if you have a Harbor Freight nearby you can get one for less than $20. My setup is to have about 50 psi at the compressor with a 25' hose quick connected to a second regulator with a low pressure gauge which also quick connects to the airbrush hose so that I can dial in the AB pressure with pretty good accuracy.
If Milair's advice doesn't help, maybe replacing the regulator will. Here's hoping it's not the compressor itself!
Mike