There's your problem...5 HP is usually fine, it's your reserve capacity that's killing you. Now I said 5 HP is USUALLY fine. In the compressor world many manufacturers lie and call their motors 5 HP when they truly should be rated at maybe 3 HP. The other thing you need to look at on a compressor is CFM out put. Paint guns use a lot of air and your compressor should put out at least as much or more CFM than the paint gun manufacturer recommends. 10 or 12 CFM isn't enough unless your using an air brush. 25 gallon reserve is excellent for filling a tire, not painting. When you paint you will drain that reserve tank very quickly and your compressor will run constantly...causing heat, causing moisture in your tank, causing moisture in your air lines and ultimately hazing off your paint work.
I just checked my portable compressor for my air brush and it's running 8.3 CFM and I can almost put that compressor in my pocket.
So in short...it appears to be a moisture problem. The moisture is coming from an undersized compressor, coupled with a warm ambient air temperature to really heat up the air your using causing condensation.
The fix, acquire a compressor that will more than handle the CFM requirements of the equipment (if you get a compressor that will handle more CFM and reserve capacity than you need it will last longer, reserve capacity should be minimum 50 - 60 gallon) your using and your problem will be solved.
I understand, simple, if only it didn't cost so much right.
Hope this helps
Ray