As the previous member stated, the pressure on the regulator will be the same whether inside or outside of the cooler. As a side note I just thought I would mention that C02 is a liquid and requires a temperature higher that the temperature of the liquid to vapourize into a gas thus producing pressure. If you keep the cylinder outside of the cooler you will get much more product, ( not pressure ), from the cylinder due to the higher ambient air temp.
Although C02 is not an expensive component of the system, you paid for it so you might as well get your moneys worth.
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