Agree with Satanpez wholeheartedly on the oilless compressor, or anything else that normally uses
oil!!! Bad idea! It's a shame too, because it takes a good idea, polymer coatings on high friction surfaces (like piston skirts) and turns it into a looser (if less is good, than none is better).
For occasional air tool use, not painting, there are some decent 110V compressors at HarborFreight Tools in the $200 price range. Home Depot and Lowes are also good sources for small contractor size air compressors, accessories (dryers, oilers, fittings, hoses), and air tools.
Sears Craftsman sells good tools and equipment. For hand tools, they're first rate and worth the extra cost. For power tools, shop Harbor Freight, Home Depot, or Lowes. As Sears doesn't make any of the tools or appliances they sell, you can get the same quality as Craftsman for 1/3 to 1/2 the cost of Craftsman. Hey, somebody has to pay those 6 digit salaries, bonuses, and perks of the folks working in what is now the tallest building in the country, right? Why shouldn't it be us?