Billy, The dipstick oil return is good, but use the fitting intended for that purpose rather than to modify an earlier one. There would be no change to the pan itself, but it would need to come off the block to install the new fitting.
The alternative to the above would be to return the oil through a banjo fitting at the distributor mount, which uses a hollow bolt. This is the method Ford used beginning in 1940, and replaces a similar banjo fitting on the fuel pump stand. That location was abandoned due to an excess of oil spray/vapor from the breather.
The filter is a bypass system, filtering a relatively small volume of oil. There is a .060" restrictor fitting included, which prevents excess flow and pressure drop. It has been stated that the bypass system is effective in filtering all the oil in the system in about 15 minutes of running time, which sounds good to me. In addition to the filtering, engine oil performs a valuable engine cooling function, and that extra qt and filter can only serve to improve that capability.
