As for the height of the filter, try to mount it at least as low as the stock pad on the block would have had it. The only restriction you have is the ground clearance of your car. I would try to be sure that both lines run slightly down hill to the filter from the block and that the filter is mounted vertical to negate drain back. The flywheel or flexplate is near the firewall mounting location so caution should be used when looking at the routing of the lines and filter in case of a flexplate failure. I do not recommend using hydraulic lines from your parts store for this job. The ID of these high pressure (3500psi) lines are very restrictive and have problems of there own due to there lack of flexability and smaller ID. #10 or #12 line like aeroquip or russell makes is well suited for this job, and will not present new problems with your install and will last as long as you care to use them. I hope this recommendation makes your decision easier on how you mount your filter housing.
Bruce