Generally speaking, the VE pump does not require a lift pump. The racor filters should flow well enough for the pump itself to pull through them.
Having a lift pump to prime the system is very nice. The 5-7 psi number is what i understand to be a good idea.
Since this is a marine application, there are further considerations. As i understand it, the general problem is that various bacteria and fungi can live and even thrive either in diesel or in the interface between diesel and water that has gotten into the tank.
The racor filters are good, but a rarely used diesel tank tends to collect a lot of gunk, and water (from condensation), and typically firing up the engine or getting into a situation you need to power out of stirs up the crud.
If your friend is well experienced with diesel engines in the water, he's probably worked out his filtering needs fairly well.
If not, he should read this article on fuel polishing systems for marine applications:
http://www.trawlersandtrawlering.com/howto/captnwil.html