Thanks for the comments guys, that helps a lot! I am definitely going to run a new circuit for the compressor. That explosion under the break really makes me nervous. Once I am running the compressor on a different circuit, the circuit that was tripping constantly should be ok, correct?
JDS68Stang, I might have some more questions for you as I need to wire up a 220 outlet for an oven I am going to put in my garage for powder coating...
Thanks for all the help guys!
I can't say what condition your original circuit is in now since it sounds like it fried a bit unless I personally could see it. I'd replace anything that looks damaged however, not worth taking the chance.
Yes, once the original circuit is looked over (beginning to end) and damaged areas replaced you shouldn't have any trouble with your lights, using a drill etc.. unless it is a 15 amp line and your running a circular saw or table saw on an extention cord, that might kick it off. My 20 amp line I've kicked off with a table saw ripping 2x4 after 2x4 w/ two fans also going on the circuit but I was pushing that saw pretty hard that day.
My earlier post was to simplify your problem by just running a 20 amp dedicated line for the compressor and just mount a single elec. box w/ a ground fault receptacle.
As for the 220 volt line, I haven't done enough w/ 220 to give confidant advice on that. Last I did 220 was 10 years ago to hook up my welding machine, I wouldn't know the gage to recommend for the length of the line etc.. Right now I'm remodeling my 2nd house, I'm a jack of all trades, very good at them, but have my limitations.
If you choose to do the work yourself read up, educate yourself and be confidant that you know how to do it, if not then go w/ an electrician.
My parents, in their 80s had a reputible heating guy hook up their bedroom wall heater outside exaust pipes last winter (I was laid up). My brother had everthing there for him, only labor to do. First he cuts thru the wall and says "Oh, there's a stud I just missed" DUH!!!, I knew it was there from prior pounding my palm on the wall to locate it by sound and knew where NOT to cut. Then he installs the pipes the wrong direction that they go, now when it rains water gets in the connections outside and leaks into the pipes and runs out on their carpet, friggin IDIOT! Then he only goes 2' past the roof line, I told my brother make sure he goes at least 4' plus or it won't draft out the exaust, it didn't, luckily furnace has a sensor that kicked it off from the fumes pouring back in.
My brother had to fix that on his own time. Then this guy has the ****s to charge them $535. Little bro took care of that and called and made the guy refund $175. a senior discount he called it. This is why nobody does my electric, plumbing or heating, what I don't know I'll learn when I need to.
Good luck w/ your project.
I just ASS-U-MEd you all knew it was in my garage... HA! 
