I got a call from Gary at Connely (sp?) who sells the Perry pumps. He advised to use a 'T' fitting as close to the carb as possible, and run a third line as a return line. He said all my problems would be solved[8D] Makes sense, and this is even how our diesel test engine at school is setup, with a fuel pump and a return line from the fuel injectors.

I am probably going to try the narrower fuel line first, and maybe even on the pressure line. Easier fix than pulling the tank, but truthfully I don't think the thinner lines will do much.