I love how everybody says that compressor isn't good for anything but filling tires. Go through my thread, I have built my entire Coronet so far with almost that exact same compressor just a few years newer. It runs all of my air tools including my paint gun and sand blaster. Granted you may have to stop and let it catch up for some tools and blasting but building a little patients can benefit all of us.
Don't invest in a new compressor anytime soon, run it, use it, see what happens, all else fails then upgrade.
Oh and the harbor freight gravity feed paint gun for like $12 works like a champ. I have been using it on the Coronet and many other projects with great results. Best part is, at that price you can treat em as throw aways if you don't manage to get it clean enough