Sorry if my post sounded a little too agressive, it was way early in the morning. Anyhow, Magnetic Starter is the word I was searching for. A true 5 horse, or a true 7.5 horse compressor should have a Magnetic starter. That is the large black box with the reset button on the front that is mounted on the compressor, and is connected to both the pressure switch and the motor.
Here is a pic of my 7.5 HP Husky (made by Cambell-Hausfeld and the same as theirs at the time it was made. Its three years old and they have changed them since it was made). I removed the cover to the mag starter so you can see how it is connected (sorta). I used #6 wire.
The NEC 430 requires that on motor branch circuits, that you size the conductors to 125% of the standard values given in table 430.247 (rather than actual motor amperage) for a 7.5 hp motor at 240 volts, that would be 29 amperes. Sizing a conductor for this would mean taking 29x1.25=36.25 or 37 amps.
Looking at conductor sizing charts you will find that THHN (commonly used in conduits) at 90c is good for 55 amps in #8 so you are more than good there.
For circuit breaker MAX capacity, you take that 29 amps found in the table in the NEC and mutiply by 250% (ref. NEC 430.52) to get 72.5 amps. You would use the next higher standard breaker than this. This would be the largest breaker you would be allowed to use, to avoid tripping during starts.
Yes, I know, its alot. I have a 50 amp on mine, and never have a problem.
The pics show the magnetic starter. #6 incoming power cables and a #10 ground come in from the right in the blue flexible conduit, and the two hots attach at the top, the ground goes 3/4 of the way around the inside to end up at the terminal on the lower right. Wires from the Left are to/from the pressure switch, and the wires to the motor leave via the very bottom of the unit. There is no neutral just two hots and a ground. One hot to L1 and one hot to L2 of the magnetic starter, doesn't matter which goes where, and a green ground to the appropriate terminal block.
Charles