Jim,
I tell my story, so you can glean what you want from it.
I have a beefed up 440, but I still am running a 5/16th line with a hi-volume mechanical fuel pump. I think upgrading would be overkill unless you plan some track time. You would have to replace all the clips holding the line to the body to accommodate a 3/8, so it's just another pain in the butt.
Some genius(major sarcasm there) took the fuel line off to repaint the underbody. When they put it back on, they found it was easier to cut the line in half right in front of the rear tire on the passenger's side. Well, after a few decades, this little rubber hose that was holding the two halves of the line together, turned to petrified wood...With a nice little crack on top of it.
I would have normal fuel pressure at start up, but when I drove it a while, it would take a dive when air started getting in there. I still think your problem is in the sending unit, but this is an example of how air can get in your fuel line. So you might want to check your fuel line before you take the sending unit out, just for kicks.