Moisture Trap Discharge

I recently bought a second hand Silentaire 20A silent compressor. When I got the unit, I noticed that the moisture trap was extremely dirty with a rust-type goop in it. Since this is my first oil-type compressor I really don't know what to make of it. The moisture trap in my oilless compressor before stayed pretty clean even after months of use. I filled it with Badger Synthetic oil and the compressor seems to run fine but the problem was pre-existing before I put in my oil. Is this normal for an oil-type compressor? Am I really supposed to expect a discharge from oil residue? Is the motor broken? Is this because the previous owner used an improper type of oil? Has the tank rusted out? Can I just switch out the moisture trap and continue using my compressor? I am really in the dark here and any help would be very greatly appreciated. Thanks!

Looks like it has some rust in the tank, and was not drained nearly enough so it carried over, drain the air from the tank frequently and get a new higher quality filter/reg/moisture trap. Also a Fisheye filter is an inexpensive option to run in line as well.

What are you spraying? Urethane or waterbased

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Give it a good flush, take of the bottom drain nut, get a hose that runs at a decent pressure and whilst leaning the compressor over, blast that water up into it, if ya worried you can cover the motor etc with a plastic. You can also use a little rust convertor first, spray some of that it and then repeat the flush out 10-15 minutes after the convertor has gotten into that rust a bit, its likely only surface rust anyway, and rinse it all out..Put ya drain nut back in after ya really let it drain any excess out and then put a new moisture trap on it..Either way ya wanna get rid of that rust in the moisture trap, it can tend to turn a lot of your paint colors brownish if ya air runs through a little wet at times good luck, just sounds like the compressor ya bought was rarely maintained and flushed.

Oh and to add, are you actually getting oil through? Ya didnt fill it too much did ya?