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Dana,

When it comes to compressors you can never have too much.  Even a little die grinder will eat up a pretty sizable chunk of CFM, and if you buy a compressor that can't keep up you'll find the tool running slower than it should and the compressor running full time trying to make enough air for it.  If you can afford to put in a 2-stage compressor with at least a 40-50 gallon tank, by all means do so.  You can put the compressor on the outside of the building, wire it into its own breaker, and plumb it into your shop with PVC tubing... plain old schedule 40 PVC will easily hold back 100-120psi, and installing runs with plastic is far easier than dealing with black pipe or copper (and far less expensive).  They make plenty of tube-to-pipe converters so it's easy to place quick disconnects wherever you need them, just remember to plumb in an 18-24" water drop below each of your outlets and always tee your outlets so they're looking up.  Drop me a line if you need some clarification on how to do the plumbing so it works, I've done several factories this way and have plenty of ideas to share that will make the job easier and less prone to passing moisture along to your tools.  I hope this helps.

  <Marv>

LML website:   http://www.olsusa.com/mkaye/maillist.html
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Please send your photos and drawings to marvkaye@olsusa.com.