That's exactly what I was thinking Corey....The smaller/shorter unit would be more accommodating IMO.....I would opt for 1/8" on the back of the unit for the simple fact it will be tight against the tank glass and conserve space as well.
The return could be done with a bulkhead like the drains and you could drill the overflow box itself and put bulkheads or fittings into the overflow box to return the water. Those tank jets would actually be pretty sweet on the overflow box, which you could direct the flow.....What's your thinking??? I know Corey knows what I'm referring to when I say tank jets.
This is what's called a tank jet..This is a pic of a white 1, but I'd use black personally, but the center section is adjustable and you could direct flow easier without anything sticking into the tank......