I say change the motor, and with the extra $$ put in a cooling/drying setup.It'll save the tank and tools, and make painting a breeze.
Being I repair/service dry air compressors at work, I wanted to do something creative for home use. I'm not spending $2k just for the drying side for small capacity home use. So seeing some odd cooling/drying cobbled together systems on the interweb I built this.
Using a Derale trans cooler, fan that fit, auto-draining moisture trap and 1/2" aluminum tubing and installed another 30 gallon tank. built a movable cart for it all.
Cooler $70
Fan $25
Trap $40
Tubing $30 (20 ft, but only used 10ft)
Addl tank $200
Addl fittings $20
over the years I've seen alot of failures that are just a rust hole in the storage tanks or lines.
I have recently purchased the electric auto drains for the tanks, being they are currently auto/mechanical that leak, but I don't get that much moisture in the tanks now.
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Chip

'Rusto-Mod'
'51 Chevy 3600 5 window | C4 Corvette front/rear suspension & drivetrain | everything else looks old and stock
'92 GMC Sonoma GT #15 of 806
'91 GMC Sonoma GT Extended cab 1 of 1
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