Now I'm confused. So what did you overdose in oil, the compressor or the impact wrench? If the compressor has too much oil in it, you should drain it immediately and refill to the recommended level. If the impact wrench, it shouldn't be a real big deal. I would recommend a very light oil. If you put 90 weight into it, that could be a problem. Personally, I use ATF and have never had a problem. Did you put the oil directly into the quick connector? On my tools, over-oiling just means that the oil blows right out the exhaust and coats your hands, face, or whatever is near the exhaust port with the oil. If you think the tool is suffering from the effects of over-oiling, just run it without a load and it should flush the excess oil right out of it. If that does not fix it, the problem is in the tool and upgrading to a larger hose will not rectify that. I use 1/4" hose much of the time because it's more convenient, flexible and lighter but my IR impact is powerful enough that a quick burst is all it needs to cinch or remove virtually any bolt. The 120 ft/lb lug nuts on my tractor zips off in less than 1 sec with my IR231. I get greater sustained performance from 3/8 or 1/2" hose but with an impact wrench use, will not make a difference for the use that I most need it for. Spraying paint, now that is a different matter.