Hi Kurt,
I have two compressors; 1 mobile, the other stationary. My mobile is a "2"hp Thomas oil-free that I use as a construction compressor when I go to work on friends' houses (my own as well). With 5 CFM @ 100psi it will run two full size framing nailers yet still work on a 15amp 110 circuit.
The stationary unit is a real 3hp, 220v oil-lubed Ingersoll-Rand SS3L3 on 60gal tank pushing 12 CFM at 90psi [about 14 CFM at 40 psi] which is set up in my garage and then piped to air stations in the garage and my basement shop. This unit is always pressurized, and each outlet runs from a separate regulator/filter set up. I bought it to do spray finishing (rather than the turbine HVLP I was using), and had hoped (until I learned better) to add some air tools in the shop. The only thing I use air for in turning is blowing chips out of hollow vessels, texturing with a scaler, and running a ultra-high speed carver for detail work. I also use the big one for working on the cars and such outside [15 minute tire rotations are nice]. One thing you should add to any compressor you plan to keep pressurized is an automatic condensate drain. At $60, it automatically drains all the water out of your storage tank and so largely prevents rust inside the air receiver. Beats the snot out of going out to open the manual drain every couple of days!!
There are, of course, way bigger compressors. The 2-stage units, 5 hp and over will give you air that's a bit cleaner because of less oil carryover from the 2nd stage, and can be a bit quieter by running at slower speeds. I could say it'd be "nice" to have one of those Bad Boys [20 CFM Quincy comes to mind], but I just don't have any real need for one.
Shopping by "horsepower" is the path to getting ripped off. Most of these outfits misstate the hp rating on their motors and sell the things on that rating. HP is largely meaningless here; what you look for is CFM or SCFM [Cubic Feet per Minute or Standard Cubic Feet per Minute] ratings which tells you the amount of air the pump will move. The more air, the more work can be done. The pressure rating tells you how much air can be stored in the tank, not how much the air will do for you, and how fast it will move. Opt for a larger storage tank if you can; 60gal. is good for most home/small shop use. That volume smooths out the pressure pulses put into the system by the compressor pump itself, and also provides a descent way to condense water out of the stored air (Boyle's Law) [Remember the Drain!]
Hope this helps.