From another Larry welcome to the nut house. I have this one http://www.harborfreight.com/air-tools/air-compressors/8-gal-2-hp-125-psi-oil-lube-air-compressor-69667.html Had it for years and does everything I need it to do. Have to let it catch up with the impact wrench but does great otherwise.
Don't have a lot of experience with plywood but what I have tried is a sacrificial piece front and back helps stop the tear out. Most bundles of ply have a protective sheet of 1/8" or thinner on the top and bottom of the bundle. If you talk to the stores you can usually pick this up for cheap or even free sometimes.