My two pence, and my apologies if I'm teaching egg sucking.
I've had good results with 2K with even a basic gun such as the Sealey S775G. Best idea would be to keep a cheap gun for primers and designate your better gun for your base/clears and single stage (and clean them meticulously after use).
As has been suggested, the compressor you have is too small to run a mask and a gun.
Direct drive compressors and cheaper units also tend to run fast to compensate for a smaller pump - ideally you want something that runs slower and cooler - water is your enemy.
I can recommend aiedirect (V or W style models), but there are a number of similar machines.
A lot will depend on what you are doing, small panels and bits - you might get by with a smaller compressor coupled to an extra tank, but you will constantly be waiting for it to catch up and you be fighting the pressure drop as it empties.
Invest in a good quality regulator and filter. You can usually pick up a decent make cheap off ebay, I have had no end of issues with cheapy Clarke ones.
Consider an in-line regulator to go on the gun, they aren't expensive and will allow you to compensate for the drop in your lines.
If you are intending on doing automotive work, you will need to consider knocking up some sort of tent or booth to keep the worst of the dust out - ideally with some form of cross draught
If you are spraying inside with 2K, you definitely want to tent up or move anything out that you don't want painted!
You also probably want to pick up a rotary polisher (a cheap silverline one will do as long as it is variable) and some compound.
With a bit of practice you can get a passable finish direct from gun, but inevitably you will end up with bits and runs and being able to rub them back and mop is pretty useful if not essential.
If you haven't done much spray painting before, buy some cheap 1K synthetic or cellulose and practice *a lot* before you think of switching to 2K, it will save you a fortune and give you less to worry about while you learn and get your setup working.
Likewise get good on small jobs before you take on something like a respray etc.
As with anything, it will cost you a lot more than you think, especially if you haven't got any of the gear already.
If you only have small stuff to do, another option could be to use your existing compressor for the mask and get some 2K spray cans (yes they do exist). Expensive way to do it, but could eliminate a lot of investment.
Thanks metalmonkey and everyone. Some brilliant advise here. I'll be taking it all on board. Just want to get bits together and be ready to start spraying when the weather starts warming up.
Has anyone had experience with Waterbase?, I would like to switch if it gives good results.