Yeah that's the air inlet filter and IMO that one looks like a weak link in your setup. Doesn't matter how good your compressor is if it is starved for air. I bought a replacement assembly from one of the members here that he designed himself and uses inexpensive lawn mower filter elements (about $3 each). The filter that came with my setup was small and replacement elements were $12. The new one has way more surface area. If you want more info on the one I bought, shoot me a PM and I will give you the members name.