Depending on the pump being used you could experience cavitation if your NPSH isn't correct. There should be a NPSH required spec for the pump, you will have to do a manual calculation for the NPSH available. The Holley manual references cavitation in the startup guide.
NPSH available must be greater than NPSH required or cavitation WILL OCCUR!!
NPSHavailable = (pressure in the fuel tank/specific weight of gasoline) + (height from inlet to pump) - (sum of losses)- (vapor pressure of gasoline/specific weight of gasoline)
The loss term is the sum of major and minor losses, the major due to friction in the hose (calculated using moody chart) and the minor are from fittings, entrance, and exit and can be taken from tables or from the fitting manufacturer)
You could probably ignore the minor loss term and see where your at. The major loss term is easily calculated.
Getting the pump closer to the tank will increase the NPSH available because the losses are smaller. The height of the pump wrt the tank will have little effect as this value is quite small in this application.
If you need help determining if you are experiencing cavitation you can shoot me a PM and I can help you calculate these values.