The bypass regulator opens up to allow excess fuel volume to return to the tank so as not to exceed the set pressure. As your nitrous and carb demand more fuel the bypass regulator will reduce the amount of bypass fuel going to the return line and more volume goes to the 'load' - providing that the pump produces more than the required volume.
The Holley pump is probably fine for the job. It is designed to work with a dead head type of regulator which is likely simpler to plumb in and cheaper. Both would work though.
The Holley pump is probably fine for the job. It is designed to work with a dead head type of regulator which is likely simpler to plumb in and cheaper. Both would work though.