Extending the return line down farther would help with the airiation but I'm inclined to think the larger fuel return line into the smaller pipe in the hanger skews the test, would back pressure in the larger fuel line to a shorter, smaller fuel line cause it to squirt out harder causing more airiation ?
And it also would make sense if your running a fuel pump 2 1/2 times the stock size you would need to size the fuel lines accordingly, or is it the coffee talk'n.