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It's a '73 1.7 w/ single weber carb (yeah, I know...)... One of the fuel lines is capped off and the other goes to the pump. It probably had FI initially. Just trying to sort the thing out--the PO had many things hooked up wrong, and I'm wondering if this is yet another...
I'm running a '75 2.0 w/ dual carbs; but the basics are the same. Yes, the car probably did have FI originally (I know mine did) which is why the one line is capped off- this line is the return line, and you don't need to worry about it. It's not going to hurt anything to leave it hooked up so long as it's capped off. But the Cap'n is right- the pump needs to be mounted below the tank level.
What happens if it's not, you ask? Well, every time you shut the car off, the gas will bleed back to the lowest point in the line, and then you'll continually cycle through having to bleed the line to the pump because you'll just be sucking air every time you go to start it.
If you're happy w/ the pump where it's at, then leave it, just make sure it's mounted low enough to keep a constant feed of gas to it. Or, you could relocate it to the front trunk underneath the tank. Click the "My Porsche Pics" link in my sig, then check out Pic #6 and you can see where to relocate it if that's what you decide to do. It's just a matter of your personal preference.
Good luck.