My Racor 500 is below the level of the tank (not sure if you would be able to mount it above on my 2000 Mk2 even if you wanted to). Makes it easy to gravity fill the racor after changing filters. The Racor is before the fuel pump...u don't want dirty fuel to enter the pump...then the engine mounted filter is after the fuel pump

My 1996 mkII has the primary filter on the starboard side of the engine behind it and the tank in in port side above the filter. I have changed engines and kept the filter in the same spot because it works. i did replace the filter because in a remote spot I had to bypass the filter because it was not working so i could get back home. i still feel it is a strange question. Good luck Steve

Brian;
 First welcome to the forum ! We hope you'll take advantage of the wealth of knowledge stored in the Technical library and call on some of that collective wisdom'' that we've got stored in out heads ! LOL. 
Second; What Al said is right on. You'll often hear folks talking about the 'three fuel filters' and thery are; First the Racor water seperation filter, second comes the fuel pump filter located inside the pump and thirdly the filter located and mounted on the engine itself. Many of the earlier Mk II boats used the Facet fuel pump. This pump has a small and crude screen within and if blocked, can cause problems. However the screen within the fuel filter is a rather course mesh and any particulate matter is usually fltered out by the Racor. We change our Racor every year or about 100 hours of operation.
Bill