the Versa 'tables used a tankless system. It centered around a 1/4 hp Gast industrial pump to provide high pressure to both the tonearm and platter bearings and vacuum for the record hold-down. The 1.0 had a control box meant to be placed about 6' from the table and between the 50' of airline. IIRC the control box had a condenser coil in it with a cup and piece of foam to absorb water dripped from the coil end. When it was powered down a solenoid would release the back pressure and purge the system.humidity is not related with the existence of water in the compressed air. even if the compressor is used in a dry climate there will still be some water inside the compressed air tank that needs to be drained. high compression cause vapor in the air to condense and it becomes water with a lot of heat. this is the opposite reaction of freon in the thermostatic expansion valve found in A/C systems.
normally compressed air tanks are installed vertically and they are fed from the bottom with high pressure air and the water accumulated inside is drained periodically. draining water also cause some compressed air to escape. the so called hissing sound mentioned in the stereophile review is probably associated with this process. high pressure air supply line is normally connected to top of the tank in order to prevent any water still left inside the tank to reach any component that is fed with high pressure air. water spraying out of the air bearing or existence of moisture in air tubes might be caused horizontal placement of the tank. additionally when high pressure air passes through small holes on the air bearing (nozzles) it cools the tube that it's riding on and makes it sweat like a soda can out of fridge in a summer day.
The SYD Aeroarm uses the same jun-air/sil-air/silent aire pumps the Kuzma does which are popular with airbrush artist. They come with a tank w/ integral regulator/filter. I double up and have a duplicate filter/air dyer 2' from the tonearm inlet, similar to the Kuzma.