If you're running an original type canister filter, there's no "wrong" way to connect it, and the diameter of the lines is completely irrelevant. There's a 1/16" hole in the standpipe that controls oil flow (and pressure drop) no matter which way the lines are connected. The lines could be an inch in diameter with no pressure loss. The "normal" connection is the pressurized oil going into the side of the canister, and oil draining from the bottom port back into a port connected just above the oil pan. On 216s, the filter drain line mixes its oil with the supply line going through the water jacket to the rocker arms.
Jerry
