air compressor question

i'm new to airbrushing and i've read several threads pertaining to air compressors. I'm wondering if any of you have experience with using this http://www.sears.com/craftsman-evolv-3-gallon-pancake-air-compressor-with/p-00915206000P type of compressor or if it would even be a viable option to use with airbrush like an iwata eclipse.
i'd rather not get one of those small airbrush compressors for the same price, if something like this can operate a few other tools that i can use for making props and costumes.

This will work great for you. The only reason I'd get an airbrush only compressor, is because they are a lot quieter than other standard compressors. If noise isn't a problem, definitely pick this one up. You also can't beat being able to use many other tools with these, then just an airbrush.

I've been doing some research on compressors as well, but wouldn't water in the lines compromise the paint to some degree? I guess what kind of paint you're using matters, but unless you have an in-line dryer, I feel like there might be some splatter after condensation builds up? I could, and probably am, 100% wrong, but it makes sense in my brain. I have a 5 gal. Dewalt compressor for air tools, but I might pick up something smaller for airbrushing.

I use both with my painting, with air lines running from each to my airbrush manifold (i know that this is a huge luxury).
the main reason for doing this is that i can run the little compressor for just the airbrushes and it is (much) quieter, but i can also have air pressure in the brushes when i run the large compressor for an hvlp gun or another tool.
I would definately go for the larger compressor for the versatility that it offers, but as stated by Futher a water trap (at least one depending on your plumbing) is absolutely necessary.
Hope this helps!

I'd say both as well, for the reasons listed...