Probably too small. I have the same size compressor and it's worthless. Can barelly even keep a hvlp gun going for more than a minute. Air tools require a pretty hefty compressor and a decent sized tank.
Idunno. Every tool I have tried on mine does not work. Hvlp guns, impacts, grinders, and wrenches. They just make a bunch of noise and generally suck. Then again I have never bought any nice tools for it. Too discouraged by everything else not working my compressor is just a nice tire pump now. I mean I even Tried using it to just blow water out of screens and it's still worthless. After having bought mine I was instructed by more knowledgable friends that the tank is everything. I think there is a reason why most people who use air tools regularly have tanks that are huge.
Well seeing as I have had no luck with mine, I would recommend waiting for someone to chime in that has a good working setup. I just figured I would share my experience with the same unit because mine also didn't work for crap. I really don't know my front from ass when it comes to these. I had always thought matching the cfm and psi ratings was all that was needed, and I found that to be very wrong.