Grainger sells the water/oil seperators.
If you don't have the vent on the side the compressor is going to suck oil around the rings and pump it downstream. You'll run out of oil, and burn it up quick. It's the same as the breather on an engine valve cover. Plug it, it'll burn oil.
The square D pressure switch mounts after the check valve and the unloader line T's in before the check valve. When the compressor pumps up and turns off the unloader dumps the air pressure off the head so when it turns back on it doesn't have to overcome 200psi immediatelly. I got the pressure switch from grainger also.
http://www.grainger.com/Grainger/pressure-switches/switches/electrical/ecatalog/N-8gnZ1z0mqhrZ1z0mleoZ1z0r564Z1z11l1fZ1z0n4e9?Ns=List+Price%7C1&op=search&sst=subset http://
www.grainger.com/Grainger/items/4ZL23?Pid=search Make sure you have at least 3 feet of air hose before the coalescing filter to give it some space to cool off.