The Elektra A3 also complained about 1/4" lines; switching to 3/8" cured the "sucking on a straw" problem. Currently my test bench has this setup:
mains (100 PSI) -> household pressure regulator (60 PSI) -> water softener -> filter -> pressure regulator (20 PSI) -> espresso machine
The filters introduce "drag" and so does the pressure regulator. Several recent threads discussing the merits of an accumulator (e.g.,
How Much Horsepower Needed for Rotary Pump?) have convinced me to get one:
mains (100 PSI) -> household pressure regulator (60 PSI) -> water softener -> filter -> pressure regulator (20 PSI) -> accumulator -> espresso machine
(The pressure regulator steps down from 60 PSI to ~20 PSI). It's probably overkill since pressure drops are not a serious problem, but occassionally I take equipment on the road and use a FloJet. In that case, it's really necessary, and may as well use it to smooth out the pressure regulator's output -- it's a small one and tends to "flutter" when the differential is large.
As for recommended pressure, I'll defer to Barry's advice. None of the manufacturer installation instructions I've read have said the same thing (quoted ranges are from 1.5 to 4 bar).