I said this back in 2011…
I have a small diaphragm compressor meant for airbrushes and the like. I have added an old fire extinguisher (test 300psi) as a reciever (it will just struggle up to 30psi.)
I always put a few Ml of steam oil in the air tube so on startup the whole system gets internally lubricated, but as there is no steam to wash out the lube you don't need to keep adding oil even for fairly lengthy runs.
To run my engines at a sensible speed (I like to be able to watch the motion) I use an air bleed valve that keeps the pressure down to about 3-4psi or even less. This is for cylinder typically 3/4" by 3/4". I find a bleed valve is needed as you can't easily make a 'safety valve' for air that is sensitive enough. So I'd say that, for smaller engines, an airbrush compressor will be fine.
Running on air is very different from steam, as on steam they run as heat engines with expansion of the steam and can get a lot more power out of less steam. On air they will run as pressure engines. The run fast easily, but don't have a lot of power – you will need to be sure the engine will spin a few revs if you flick the flywheel – low pressure air doesn't have the power to beat a misaligned bearing. I guess that the valves are best set up differently, but I'm not expert enough to know the difference.
Strangely, you seem to get more leaks with air – oily bubbles in odd places around gasketed joints. Steam is more fun – I always seem to get a jet of hot oily water shooting out of the exhaust across my workshop! Experts say that engines run smoother on steam too.