I paid $65 for mine at Lowes and it seems to work just fine.. it has a 2 gal tank on it so it eliminates any pulsing from the compressor, and the reservoir also eliminates some of the flow problems.
I took the regulator off and replaced it with a Testors hobby regulator (it is marked in 1 PSI increments instead of 2.5) and have had no probs with it! The regulator it comes with works but it is more a "seat of the pants" feel as to what air pressure you are at....