I've got a Harbor Freight compressor. Bought the $99 special at first, (2HP 8gallon, 5CFM) but it couldn't even keep up with air tools rated at 3.5CFM!!! Went back and traded up within a week to one of their $179 units with a higher constant CFM supply rating (3HP 10gallon 7.2CFM).
It is worth paying the difference, it's much smoother running & quieter. Quiet is relative of course, they are all loud to me compared to my old shop compressor which was a rotary screw compressor. It sounded about like a refrigerator, and could run an entire shop with 20people!
Do yourself a favor, run it for about an hour and change the oil. These "Cheap" compressors are a great deal for home use, but you do tend to get what you pay for. My first oil change was a little dark, and the oil is pretty clear now.
Hope that helps,
EricV