Funny that you've mentioned that because on my first bike, I was told not to cut the line because it would shrink. So it had a small loop in it when it was new. 6 months later, it was straighter that an arrow. I couldn't believe how much that fuel line shrunk.
I use a r/c filter.
I change my fuel line with the ones they use on motorcycles, same goes for the fuel filter. You can easily get these in any motorcycle shop that sells spare parts. The stock fuel line hardens and looses it's flexibility. The best fuel line I've seen is the one they used on gopeds, but the diameter is smaller. It's very flexible and tough, and there are a variety of colors you can choose. I do plan to change to the goped fuel line when I get the Walbro carburetor.