So I played around with it a bit more, made the paint much thinner and getting better results. However I can't figure out the other brush , the needle is not visible so I assume it's bent and not fitting through nozzle , however even without the needle in the airbrush the water does not spray, why is this?
If the needle isn't visible there is a good chance it hasn't been placed far enough into the nozzle, this could be due to something on the nozzle, you'll need a magnifying glass to check that out.
Secondly, as mentioned already, thinning paint does not thin the pigment, the pigment remains the same and thinning heavily pigmented paint will usually cause pigment migration or or separation of the paints elements.
@Mr Micron, he does mention in the third post that the paint is Vallejo airbrush ready primer, however, I've read of this somewhere else recently and as "wmlepage" states it's only airbrush ready for larger tip and nozzle sizes exceeding 0.5 da do ron ron's.
@Neemo83, check out Mitch's strip down vid and remove the needle completely to inspect it, try to get a good look into the nozzle to see if there is anything that could be blocking it, there could be some dried paint or small debris from the factory since quality control with cheaper brushes is almost nil.
As I understand it you want to airbrush to do your models, if you want cheap with some degree of certainty I would recommend you check out either the Neo for Iwata or the Harder and Steenbeck Ultra, both of these are ideally suited to your purpose and carry the relevant guarantees from both companies, this would save you a lot of time and headaches, and to further save money and time cleaning you could do your priming from a simple rattle can and use your airbrushes for finishing.