Going to switch out the sending unit..

are you thinking that is not enough for a fuel return line?
im just running a mechanical fuel pump, so i figured right now, there is zero fuel returning
even a hampered return would be better then none, right?

More of an FYI when you have a 5/16" line going to a 1/4" hose barb. Have a plan to adapt the two. It may or may not impact things, depends on your pump pressure, regulator and engine demands.