Yes its in the tank and there is no easy way to get at it. Everyone has their own little tricks but this is what I do:
-Take the tank off and drain it.
-Take out the screws that hold on the fitting and slide the fitting out.
-Slide the clamp back so you can remove the fuel filter hose from the fitting.
-Tip the tank upside down and shake the fuel filter (and the piece of hose that is attached to it) out.
-Get a new piece of hose a lot longer than you need, about 3' its only cheap.
-With the tank still upside down and the gas cap removed, insert the new hose in the hole where the fitting goes and fish around untill it drops out the fill hole.
-Slide the clamp on a couple inches and put on your new filter, slide the clamp in place.
-Are you getting the idea?
-Pull the hose out through the fitting hole untill you think you have about a foot left in the tank.
-Cut off the rest and put the fitting and its clamp back on.
-Put the tank back on, hook up the fuel line, put gas in it and your ready to go.
If anyone knows a better way feel free to share with us. :P