For a budget of around $140 (or less w/ coupons) the Harbor Freight 2.5 HP 10 gallon are decent for projects all the way up to HVLP auto painting. The amount of SCFM @ 40 psi is a good spec to look for. If it's at 6 cfm you can run the higher volume applications, they have a 21 gallon w/ the same motor but runs a bit less at 40 psi (not sure why).
10 gal 2.5 HP 125 PSI Oil Lube Air Compressor
These can be found as low as $149 w/ coupon
21 gal. 2.5 HP 125 PSI Cast Iron Vertical Air Compressor
The 21 gallon would be a better choice for prolonged air use but for whatever reason the 10 gallon gets better reviews.
I have the 10 gallon model and it's worked very well.

One trick for longevity w/ the HF compressors is change the pump oil shortly after initial break in w/ straight 30 weight oil.