No, Actually the hose length is not important it is the pipe that should be about fifty feet. I realize this is not always practical and the are ways around it. Your goal should be to condense as much water in the pipe between the compressor and the separator as possible and have this water drain down into collection "drops" where it can remain until it is drained. This is not nearly as hard to do as it sounds and there have been literally pages written here on how to do this, basically you will use the pipe as a heat exchanger that will cool the air thus allowing for condensation of the water vapor BEFORE it reaches the separator.
For a small shop with limited space the set up Rambo has is just about ideal, heck that would work good in a big shop