Returning to tank unnecessarily heats tank (condensation and polymerization issues) and wastes heat that you added from tank to IP. Looping will increase heat to IP significantly - this is the best reason to do it.
Some filters work better on the suction-side of pump than others. I'm not sure how those will perform there, but otherwise the base and filter are adequate for VO. You will want a 'water-block' type filter on the diesel side, but don't waste the money on water-block for VO - it WILL NOT 'block' water or separate water from VO.
You will want as much heat as possible before the VO filter, especially on the suction-side, cold oil will not flow well thru filters.
If you 'make your own' heated pick-up, be aware of what will happen to it when a cold slug of VO slides across the tank and hits it! Coolant in your VO will probably take out an IP before ya know what happened. The Hot Fox is a stout unit and worth the $$ IMHO...
You are quite welcome for the help, although I am certainly no expert (especially non-PSD). I learned most of what little I know from the knowlegable/helpful folks on frybrid forum. I always tease
'don't send money - just set aside a little VO for me for when I get to your neck of the woods!'. I get around the country quite abit for work and since I grew up in central FL, I actually get down there alot.

(I have friends/family in Tampa, Orlando, Kissimmee, West Palm, Sebring)
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Choose wisely. Or
PLEASE post pics of the carnage!!!
2001 F-350, DRW, 4x4, XLT Crew Cab, flat bed, 7.3, 6 spd, Dipricol Optix gauges on pillar - EGT, Boost, Fuel Press., HPO Press. - No Muffler, AIH delete, SB Con OFE, AC code injctrs, GTP 38R. Vegistroke-inspired WVO system w/150,000 trouble-free miles! BTS tunes, 203 t-stat w/billet housing, Evans coolant, coolant filter, boost relief valve, Dieselsite IC boots, Hella headlight harness, '07 grill/lites and big, bad front bumper!
2000 Excursion 4x4 Limited - BTS trans and tunes, AIS, Frybrid/V3 SVO conversion with over 100k VO miles so far!
That's 250k miles on SVO between them!