I have a kit from Greasel that uses ½ inch lines. The system is a hose on hose with a transmission cooler used as the heat exchanger is the front tank and a Racor 6120 with heater installed in the clear filter bowl. Filter on my 95 powerstroke. I added an arctic fox mid ranger inline fuel warmer to the standard kit from Greasel. I would recommend you checking out the arctic fox fuel heaters.
I have had no fuel related issues with this setup.
Note: Greasel changed their name to Golden fuel system.
http://www.goldenfuelsystems.com/pro...stems_ford.php