Each to his own, but I would get an "oil" not "oil-less" compressor. They cost more but you will not regret it. The non-oil type are OK for light home use I guess, many people like them, but for the long haul I wouldn't advise it. The air tools you get with the Sears ones are OK but not quality. OK for the weekender I guess. Even the fittings, gauges, regulators are sometimes "cheap". Go to an air-hydrollics store and ask the Pros. Don't take my word for anything. I just have my experiences to go by.
I see some small 3-4 gallon oil type at Checkers with pretty good SCFM's, around $100 but who knows how good they are and the "Sears" $89 one is small, cheap, works OK for light stuff but lower SCFM's. (I use one for brad nailing, a butterfly ratchet, occasional lug removal...blowing off parts and dust,etc. Perfect for light duty, despite the low SCFM's. Voulmn and your pressure regulator have more to do with effective use in a "small" hobby way. You can always add a 12 gallon second tank to a small one (rig it with valves to be detachable and portable; I did.) to increase your volumn stored on these small ones, and if your not a shop or constanly running it, it will work out OK. Does for me. Its a low priced option for a small oiled unit. But...get a bigger one if your really serious about having one and plan to use it a lot.
Get a nice not so portable oiled one from HD. They are pretty big, maybe 50-60 gallons. In the high $300's, I think, but worth every penny. Don't quote me on price/size as its been awhile since I looked at them. Do yourself a favor and at least look at them and ask guys that use compressors a lot for a living. Oil ones will probably outlast three or four "oil-less" ones. Pay once or many times over the years. Just check things out before you buy a "bargin".
I believe the oil-less ones use a leather sleeve or something in them. (Ever smelled and watched the smoke as a small portable car unit "burns up" because you were airing up too many tires and getting it too hot? I have.) I think the dust wears them out faster too. Not good in really dry dusty areas I am told.
No doubt a bunch of people are going to tell you they have no problems with their oil-less ones from Sears. And that's OK. It's your nickle. Just ask some professionals before you buy so you have all the facts. I don't claim to know them all.