Is there an electric fuel pump that can be mounted in the engine compartment instead of near the gas tank? Has anyone mounted an electric pump where the mechanical pump is located? The pump is for a blown 350 engine. If so, I would like to know the type used.

Electric pumps are good for pushing fuel, but not at pulling it. When you accelerate you are applying g-forces to the fuel, making it even harder to pull. That's why electric pumps are mounted in the rear of the vehicle.

Yeah - you really want to put the fuel pump as far rear as you can... if it's in the engine compartment and loses its prime you are in for hell.
There are a couple of pumps out there that will "pull" fuel but they are extremely expensive.
Put a good old Mallory 140 back by the fuel tank with a Relay

It's disappointing with today's technology that there's not a front electric pump option. I once thought I saw an electric Holley pump bolted to the block where the old mechanical pump goes, maybe not? http://www.nastyz28.com/forum/gallery/data/502/Camaro_Parts_002com.jpg