Jason,
It is not a large compressor but should be enough to do what you want - I would guess that it delivers around 6-8 cfm. If it cycles a lot, then you just have to wait for the tank to build up pressure.
For a conventional gun which is likely what you have, you will need around a 1.4mm nozzle/needle and this is probably what the gun came with. 40 - 50 psi should be enough pressure, say 4 bar tops.
You don't say what you are spraying but if it is very cold and possibly your paint is thick, that might be an issue but since you have said that you thinned it, it might not! How thin is the paint? A viscosity funnel is ideal to measure this but I guess you don't have one, so aim to get a viscosity like full cream milk.
Begin by opening fluid flow and fan control knobs all the way, with the air closed, then with the gun trigger depressed, feed in air by opening the knob on the gun. You should get a good flow which you can then regulate by playing with the flow control and the feed pressure on the gun.
If you don't, the the gun is perhaps blocked with paint from the last time you used it!