if you do the in-tank pump...why not replicate the GM setup and use a GM pump?
I've run the same external pump (Walbro) from day one on my engine swap without issue, with a simple setup using the stock tank.
All your issues go away with cool weather?
We're at the early stages of planning, but we're considering the GM pump, although the whole experience of this conversion makes me want to avoid GM parts as much as possible (I've had numerous, relatively new, GM parts (not related to the fuel system) just spontaneously decide to die without warning).
Yes, high ambient temperatures (90 plus) seem to be the critical component here. Of coarse, you seem to need sustained highway speeds, mountains, and moderate altitude as well. But without the heat I have never had a problem. TLC in Van Nuys, the guys who did the conversion, say they have never had a problem like this with any of their other conversions, although few of them go to the desert Southwest. It seems that there is something special about this set of conditions since several other respondents to this thread that have had problems are in the Southwest, and the problem was rectified by an in-tank system. Interestingly, TLC did mention to us that they are going to in-tank pumps in their conversions, but the reason for this was not stated.
So it seems that you can get away with an external pump if your vehicle is not exposed to these somewhat specific conditions.
A nice in-tank fuel pump setup is nice and quite, but I think you had better understand your problem before jumping off into that. Maybe it will solve the issue.
I think that the way my system behaves along with what others in this thread have seen are pretty good evidence that cavitation (I think of this as a form of vapor lock) is occuring at the level of the pump. That would explain why placing the pump in tank would cure the problem (the in-tank pump eliminates the resistance of fuel line between the tank and the pump which I think of as the substrate for the cavitation). Beyond that, another poster did place a clear filter inline and was able to visualize lots of vapor (bubbles) in the fuel lines. I, personally, did also have a filter that was clear as well a number of years back. During one of these episodes, I saw the same thing although I wasn't sure how to put this observation into context and I subsequently moved to a non-clear filter.
You never said if your fuel lines were away from heat soureces and if the gas tank had adequate clearnace from exhaust.
I just think that a vapor lock induced issue from heat is not probable, unless you have something wrong with clearnce from heat sources or wrong fuel hose etc...
my fuel pump and 1st fuel filter are in the same general location, and my primary fuel filter is betwen the engine and the fuel pump.
in my mind vapor lock on a fuel injection systems takes some obvious exposure to a heat sourece....which you should be able to easily see. THe obvisou place this would take place would most likely be at the passenger side rear of hte engine...espically if you follow or use the stock fuel line or routing...as the exhaust manifold of the pasenger side is fairly close to that area.
If you go with an in-take pump....I would use the stock GM pump from a 97-99 GM pickup/SUV, if external pump I would use Walbro. Rover's post above shares a link where he setup an in-tank pump.
As far as a localized heat source, I believe I did mention above that the whole fuel system is along the passenger rail and the exhaust is along the driver rail. Therefore, we can't really substantiate a localized heat source as a problem.