Paul ... that schematic you refer to has got me confused. Are you creating an anti clockwise circuit via pump, V6 and V9 when dispensing nozzle is closed, and discharging to the car where it says "oil out to car" when it's open? If thats the case, then yes, I agree it would improve matters.
Lost me on the other points!
In the photo is that a 3 way valve at the bottom of the sight glass, Keith mentioned some about it but I didn't follow that either ... think I'm on an inactive brain week!
The main reason for reverting back to the way it was, was because to see the level via the tube, V3 needs to be open and cruddy oil will collect in quite a large length of pipe work. Personally I can't see the logic for a sight glass if you are pouring oil into an open topped tank ... you can see the level as you pour it in. Why would you then need to look at the side of the tank to check the level in the sight tube?
Bit like closing a door, seeing it's shut, then feeling the need to be on the other side to see if that's shut too!