It's a closed-loop system with an inlet and return line. My filter is located between the tank and fuel rail which filters everything coming from the tank. I don't use a dampener. The fuel return line runs from my fuel rail to an Aeromotive adj fuel pressure regulator. I have a gauge here and this is where the fuel pressure is set. I mounted the filter in the rear as a part of an engine bay renovation I've been working on. Here's a diagram - http://z32.wikispaces.com/file/view/FuelSystem.png/232530178/FuelSystem.png
What AndyMac is saying is that there is always the possibility of fuel contamination between the fuel filter and the injectors. The further the distance between the fuel filter and the injectors the greater the risk of contamination. Your setup has around 3 meters of unfiltered line that could introduce contaminants if something flakes off the either the factory steel fuel lines or the rubber line downstream from the filter. The factory setup only has a short piece of rubber line between the filter and the fuel rail.
Use a z200. They filter at about 6-7micron, so VERY good quality filter, high flowing, tad smaller and easier to hide, and best of all: cheap as chips.
Beware Factory paper style filters are around 5 microns. The finnest stainless mesh ones that are a decent size are 25 microns and special order and cost extra, most are 75 microns. As Andy says if filter is not good enough inectors can block. You only need mesh type if using alcohol fuels, or for big hp for higher flow, otherwise can use two paper type. Some go billet alloy fuel filters for bling factor. Beware of cheap EBay copies with coarse filters with small filter surface area. Anything under $100 is either crap or to small and require regular cleaning or both. This was the set up on my race car. Now has one large mesh type as safer with running on E85.
Just a reminder to our non Aussie members. this is a primarily Aussie/NZ site, I know members from other countries are more than welcome but please remember we dont all drive Left Hand Drive cars. Aussie and NZ are both RHD car countries and as such when chaps from the states etc claim that parts are on the drivers side it can lead to confusion for some members. Making the reference to left or right side (as you sit in the car) is the industry standard here (and I believe in other countries) and removes confusion. Sorry for the hijack
Yep confusing and worth clarifying. Most cars from factory run the fuel filter under the rear of the car. Nissan are more unique running them in the engine bay. Where ever they are they are often not changed enough and they block up, which puts more load on the pump and require replacing and worse still can make engine run lean.
