Well, asan update last month I bought one of the generic compressors from Harbor Freight. It was a 1/3 hp, 100 psi with a 2 gal storage tank on sale for $39.99! (had a special coupon for it in Flying magazine...) I also got the 2 yr replacement warrnaty for an extra 10 bucks so if it fails in the next 2 yrs - just go get a new one. All this for a tad under $50!
So far I've been very pleased with it. Yes - it is noisier than the Paasche, but thats the only gripe. i was able to use the moisture trap from the old one, (could have used the pressure gauge as well, but it came with one on it), and all the attachements work fine. It's very easy to adjust the pressure on, and its nice to be able to crank it up to 60 psi or more for quick cleaning sessions. Its nice to have the tank filled up and ready to go at a moments notice.
All in all, I think its a good deal - especially for that price!