I agree, that would be ok for spraying RC Car bodies and such but for finer detail you could do better.
I got my Badger 155 kit (with hoses and bottles and all) for about $65.00 and a commercial compressor from Lowes Hardware for about $70.00 ... those work fine for all the modeling I have done since then.
For a little more you could get the Thayer and Chandler Airstar V for $99.00 reconditioned complete with regulator and moisture trap and be even quieter! (the commercial compressor is a little loud until you get used to it, about like a vacuum cleaner or blender, it only runs for a minute now and then to refill the tank though)
---edit---
I forgot to put the link to where you could find the model compressor:
http://www.badger-airbrush.com/garagesale.htm
it's towards the bottom of the page...