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Running the fuel pressure is only 5-9 psi. The needle is opened by vacuum on the diaphragm and not fuel pressure. Pop off psi is only a bench test to simulate running vacuum.

1200:
Yes, prime the oil lines. No need to run premix initially unless doing a full top end rebuild and even then it's not necessary.
Tygon works fine everywhere.
Consider doing the Oside Bill...

You’re on the right track.
drill the returns now... it’s easier. We just drilled ours, literally minutes ago. I taped the other passages to prevent shavings from getting all over.