There was a post where someone was talking about the pickup tube being to close to the pan. If it is it could possiably suck the pickup to the bottom of the pan. The tubes should have a plastic "button" or somthing like that, that keeps it fron getting sucked to the bottom of the pan. That might be somthing to look into.
There are two bypasses on your oil filter adapter. The pressure bypass and the filter bypass. The pressure bypass is the one that came with your pump rebuild kit. the filter bypass is where the filter screws onto the adapter. When you remove the filter you will see it. there is a teardrop shaped peice of metal under the part that the filter threads onto. you can remove the filter threads with the correct deep well socket to get to the filter bypass. I am building a 401 and I just caped off my filter bypass. Read here for a little more info on that: http://www.bulltear.com/forum/viewtopic.php?t=3996