Yes, that's the correct line placement. The pressure source is 2/3 of the way toward the back of the engine, about 4 inches above the oil pan rail. The return port to the crankcase is just above the pan rail, and is about 6 inches further forward than the pressure port. Have you tried using a direct-reading gauge attached to the engine without the filter connected to see what pressure is available?
Jerry

"It is better to be silent and be thought a fool than to speak and eliminate all doubt!" - Abraham Lincoln
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