On a 1960 261 installed in a '54 1/2 ton, I placed the original large (full flow) canister on the forward side of the intake manifold. New 1/2 NPT hoses had to be made. No problems in three years of daily use.
For no particular reason, I changed to a remote spin-on full-flow filter mounted on the firewall (needed longer hoses for this location). No problems in over eight years of infrequent use.