Thanks all for the input. I'm just a hobbyists so I don't need a pro system, but if I want to do this type of work I need to have a decent setup so I don't waste time and expensive materials. Being the frugal fella I am I have read a lot about homemade after coolers and plumbing systems to eliminate water. I was going to build my own but the discovered the Harbor Freight Refrigerated dryer. Nothing but positive reviews for people using them with plasma cutters and for spray painting. I would probably spend $200+ for everything needed to build an after cooler and still not come close to what a refrigerated unit can do. So for $400 I bought the Harbor Freight unit and I couldn't be more pleased.
I re-configured my system the other day and after the work I did yesterday I am totally impressed. It was close to 80 and one of the most humid days of the year. My paver patio and lawn were wet all day. That's wet, not damp, and it was sunny all day. Granted they are in the shade, but I couldn't get over the humidity in October in New England!
I sand blasted for a solid hour and then primed my parts with 3 coats of epoxy. Probably a total of 45 minutes spraying time. After all that I checked my Motor Guard filter and it was bone dry!
My system: Harbor Freight two stage compressor to SpeedAire 40 micron filter/water trap to Harbor Freight refrigerated dryer to Motor Guard M-60 1/2" NPT filter. All components are connected with 1/2" fittings and lines up to the Motor Guard. After that everything it 3/8".
I have had the compressor for over 3 years and have really put it through it paces. I provides more air than I will probably ever need and has been totally trouble free. It was my first big purchase at the Harbor and I was nervous given what the net has to say, but I'm impressed so far.
I've got under $1400 into my entire system including fitting and hoses and couldn't be more please. A fair amount for the budget conscious, but if you are going to spend $500-$1000 or more to paint a car it's worth the investment. If I treat it right it should last many years.
I hope this info helps others contemplating these decisions as many others have helped me make mine.