Compressor Modification?

Wasn't exactly sure where to ask this but I figure someone on here will probably be able to spot any gaping holes in the plan that I've missed...

I recently picked up a new compressor without taking into consideration the noise (and subsequently pissed off neighbours) so I'm looking to modify it a bit.

I plan to remove the compressor and put it in a box lined with acoustic foam, with a muffled inlet and outlet and run the air outlet to the receiver via a water trap (which will extend the compressor outlet pipe distance approx 20/30cm from oem). I can't think of a reason I can't do this apart from possible heat issues but would like a second opinion if possible.

Excuse my terrible drawing skills:

Cheers for taking a look
 
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