I bought a HF cabinet a while back for what I thought was a very decent price (coupons + sale price, I think it was like $125 bucks or less) and took all the precautions necessary to make sure it would leak MINIMAL media. Also ended up replacing the absolutely useless light bulb with a set of halogen puck lights, and then mounted a water separator/regulator combo right on the cabinet. The compressor I started with was very similar to yours if not every so slightly bigger (I think mine was a 30 gal, 4.5/5.5 cfm or so). At first I thought I was actually doing pretty well with my set up, but it basically degraded from there.
First off, the hoses HF uses are absolute crap. Might were actually ballooning out on the pressure side, and collapsing on the suction/pick up side. Any time I moved just right, the hose would kink or collapse on the pick up side. Replacing these hoses with something more stable is an absolute must. Actually, I ended up replacing the hole gun/take up tube with a campbell hausfield from amazon for about $20, and the quality is MUCH better
I also got tired of hearing my compressor run non-stop when I started blasting, so I upgraded to a 60 gallon vertical that puts out a little more than double the CFM.
I run about 80 psi from the compressor, and regulate that down to about 65 psi on the cabinet, and the difference in blasting has been night and day. Now, I haven't tried it with my old compressor since I upgraded the gun and hoses, but just doing that alone should make a world of difference.
Also, make sure you're emptying your water seperators and draining the water valve on your compressor on a regular basis. Wet media will really hang things up.
In retrospect, what I spent in time and money with upgrading my HF cabinet and getting things dialed in to work half way decently, would have been much better spent on a better cabinet.
Maybe something like this:
http://www.barrelblaster.com/BarrelBlaster1.htm
It's about twice the price, give or take, but much better designed and built from the looks of it, and very likely worth the higher price.
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