With the beer clear in the line but still foaming, first thing to check is for any burrs in the shank or faucet. Second issue would be for any pressure leaks. These will drive you crazy. Putting the cylinder in or out of refrigerator will have nothing to do with how the system will perform. Try to find out what the volumes of CO2 are. Check out their site at
http://www.saranac.com/products/beer/. If this is around 2.5 volumes, your pressure should be 14 PSIG at 38 degrees liquid and dispensing at sea level. Be aware that when beer is foaming it appears to be coming out very fast. Naturally you will want to reduce the pressure. If you do, the foam will become worse.
Scott Zuhse, Instructor
Micro Matic Dispense Institute