Oil lubed means it has is lubricated by oil in the crankcase like a good air compressor instead of being oilless like some of them.
I had that model air comp for awhile and gave it to my son a couple of years ago. He is still using it without problems. It's good for pumping up tires, a touch up spray gun and light duty jobs. I won't run any significant power tools, but it will run a nail gun.
They are noisy because the compressor is direct drive and runs at nearly 3600 rpm. Mine was easily worth the money.
I have that model of compressor in my single car garage, but it only gets used for airing up tires and cleaning up some. Have had it for abuot 4 years now though so I would say that it is worth the money.
As for their air tools I've had pretty decent luck with them. Might not be professional quality, but I think for the homeowner and the like they will do fine.
I have that same compressor i bought it in january i got it on sale for $99. I use it with a 1/2" impact wrench and an air ratchet but i use it most with a benchtop sandblasting cabinet that i also bought at hf. It works ok but you have to stop once in awhile to let the compressor charge the tank back up. I also have a 6 gallon portable air tank connected to it as well and the added volume helps it give a little more run time to your air tools before the compressor kicks in i plan on replacing the 6 gallon with an 11 gallon air tank i saw at hf and that should work even better. If you have a $60 off coupon then i'd jump on it i don't think you will be dissapointed.
I have one that mechanially looks similar but with the 21 gal. tank. Have had it for about 5 years and works great for me. I consider myself just the avg. homeowner and use it for roating tires, airing up, blowing off the mower, engine, ect, ect.
For the money spent it was well worth it, and would recommend it to the avg. guy.
I've got the twin tank model with the same air-end on it. Got it for ~$79 some years ago. It's a great unit for my usage. I do have to free up the hi press cutoff switch from time to time with spray lube. That is the only issue I've had. With these little oil filled units, you just need to make sure it never tips over in your trunk, etc.. You will wind up with a spilled oil mess. You can easily inflate things, run big framing nailers and small rotary air tools. Like labman says, you take your chances w/ quality (thus, the price). HFT does have a good return policy if you dislike it that badly.
Do you have a HF retail site near you? They are frequently on sale for $99. I have the same version in my garage for the past 3 years. Great little compressor. Use it to air up tires, 1/2" impact wrench, air ratchet, and nail guns.