that kit WOULD work, but you should seriously consider buying a small tool compressor and a dual action airbrush.
the tool compressor will cost you around 100 bucks but will be able to maintain enough pressure so that the motor isn't running constantly while brushing. those little airbrush compressors can only put out like 40 or 50 psi, and so the motor will be running a whole lot while using. plus you can use a tool compressor to do around-the-house jobs like fill your tires and dust stuff off, and even run small air tools if you have them. have a look at this compressor: http://www.homedepot.com/webapp/wcs/stores/servlet/ProductDisplay?jspStoreDir=hdus&catalogId=10053&productId=100645228&navFlow=3&keyword=airscout&langId=-1&searchRedirect=airscout&storeId=10051&endecaDataBean=com.homedepot.sa.el.wc.catalog.beans.EndecaDataBean%40499a7124&ddkey=Search
a dual action airbrush is just so much easier to use (with a little practice) and provides a whole lot more control than a single action. gravity feed is also a plus because you can shoot at lower psi. this is a nice dual action gravity feed airbrush that will serve you well: http://www.chicagoairbrushsupply.com/iwrebr.html
you don't have to "go pro" but i have a feeling if you get that 110 dollar kit you will wish you got a bit nicer stuff. the products in the link above have worked great for me and i would recommend them to anyone looking to start out.
as for spraying clearcoat, it all depends. some people use epoxy, some people use polyurethane, some people use a moisture cure urethane, some people use automotive coatings. if your clearcoat is thin enough then you can spray it. clearcoats like polyurethane and Dick Nites (moisture cure urethane) can be sprayed if thinned slightly. these can also be dipped. automotive clear's can also be sprayed, as this is how they're meant to be applied. epoxies need to be brushed on.