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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>

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