HANDGLIDER
I have and use that Kobalt gun from Lowes only for primer and have had problems with too much air pressure. There is a Kobalt mini air regulator that you can buy for about 15 bucks. It's a small gauge regualator that you can install between the gun at the end of the air hose. make sure your using the lowest pressure the gun is rated for. I think it's around 30 or 40 pounds. Then test, test, test.... try to adjust the paint flow down to the point where you can get an even coat with one pass of the gun.
I have a regulator on the compressor, buT the only hose I have is pretty long, and I may be getting quite a pressure drop between the regulator and the gun. Shorter hose or and inline regulator.
You want to experiment with the lowest air pressure you can paint with. With my Sata Minijet, I can adjust the paint flow to the point where I can get a perfect coverage with one pass, I don't think you will ever be able to do that with the Kobalt and DCC paints - at least I haven't. The biggest problem I've had with the gun is too much air pressure and not enough paint. Overall I've not been happy with the Kobalt gun and only use it for primer. There is a LOT of overspray with the high pressure. If your using DCC clear coat you will have a huge amount of overspray with this gun, it's going to be hard to have a shinny final clear coat because of the overspray. You will have to wetsand and buff.
Also I've been reducing my DCC color and clear to 50%. You might be better off wet sanding and going back with an airbrush. I've had great results with the any of the mid-range badgers and Iwatas....
As far as over spray goes, I probably sprayed 10 oz at this thing. About 2-3 oz stuck. Sata minijet on e-bay ~ $120-$200. My badger is cracked around where the air connection goes, but they're cheep, and I will probably get another one soon. I used this for painting some cowls and wheel pants with K&B several years ago with good results. Probably the best way to go on pinstripes and other small areas.