You can get a dual action paasche for about $70 online..
http://www3.towerhobbies.com/cgi-bin...&I=LXDD38&P=ML

Get an airbrush compressor for $130 and you'll be set for a long time..
http://www3.towerhobbies.com/cgi-bin...?&I=LXMCL5&P=7

oh and the line adaptor $4
http://www3.towerhobbies.com/cgi-bin...?&I=LXXR22&P=7

I don't see anything about the testors setup I like..

I have the Badger 350 and I've been happy with it for 10 years now but I don't do fine detail work..
Just basic painting.
http://www3.towerhobbies.com/cgi-bin...?&I=LX8170&P=7

I used to have a hobby compressor till the movers dropped it and cracked the head..
Now I just use my Dewalt 55155 compressor.. way overkill but it's a great all around compressor.

If you do go with a hobby compressor I'd recomend getting one of those portable air tanks,T it into the air line and add a regulator.
It will give you a nice reserve capacity and totally eliminate any pulsing from the compressor.

Any small air compressor with a tank and regulator will gave the same results but will be much louder.