Fuel pressure regulator plumbing : 850 Demon with a Carter mech. pump

I recently removed my Holley mechanical fuel pump from the 493 because I suspected it might be contributing to a fuel delivery issue. It showed 6-7 lbs of pressure at idle. I bolted in a Carter and now the pressure is at 10-11. I suspect that prolonged driving would overwhelm the needle valves and flood the carb. I obviously need a regulator to make this pump work.
Several types are out there with a wide range of prices.
I first considered a return type. This would allow me to send fuel back to the tank through the stock replacement 1/4" vent line. I saw a schematic of a Mallory pump 7 regulator that showed the regulator mounted behind the "fuel log".( Behind the secondary fuel bowl) I'd figured to run the return line to the firewall then down to the RH frame rail. I was all ready to order the regulator and some fittings when the rep at Summit racing said that this location of the regulator wouldn't work. I don't know enough about it to put up a sensible arguement but I've seen the regulator in that position before.
I considered an "inline" type with no return line. This would simplify things but I'd lose the benefit of the cooling of the fuel by way of keeping the fuel in "a loop".
If I can't make any sense of this, I'll have to put the Holley pump back on. I'm leaving Thursday morning for the Spring Fling in Van Nuys.
Thanks, Greg