Thank you, kind people!
This is an interesting subject for sure.
I have done some research and I found a good solution ( I think ) to overcome most of the possible problems.
As far as I know, the problems to overcome in designing a high performance fuel system for the VW IDI engine are:
1. Flow restrictions that cause either air leaks or the VE pump to cavitate
2. Lack of adequate extra fuel flow for the VE pump's cooling and lubrication
3. Possible water contamination
4. Leaking return lines
5. Uneven flow or pressure to the VE pump that affects timing / internal pressure / throttle response
6. Too high fuel temperature resulting in pump wear and reduced power
7. If a transfer pump is used, providing enough flow and not making this extra pump a restriction
8. If a transfer pump is used, protecting it by adequate filtering of the largest particles without causing unnecessary restriction.
SO. My solution looks like this:
I drew this up using a gasoline EFI catch tank design as a template.
Tell me what you think!
The big idea in this design is to allow plenty of cool fuel to the VE pump at all times, with minimal restriction to the VE pump's intake.
The catch tank in this design is a non-pressure one to remove as much stress from the transfer pump as possible.
The transfer pump is protected by a rough filter and also by a water separator.
The only questions that come to my mind right now are:
1. Will there be reverse flow in the fuel tank's return line?
2. Will the transfer pump be over loaded by three different filters?
...At least the VE pump should meet no resistance nor pressure when sucking in fresh fuel.