when you connect the beergun line on, is there foam in that 10 ft of line? Or does the foam start at the beergun itself?
If it is the entire line, I tend to think it is something with the disconnect or poppet - try a different disconnect, one you know to be good. Also, make sure the line is actually 3/16 ID tubing (I don't know how this would be wrong, but just make sure).
If it is liquid in the line, and foaming at the beergun, then I tend to think you have a slight blockage in the beergun. Disassemble it, and use the provided brush to make sure everything is clear. Also check where the rubber nipple is to make sure the rubber is smooth, as is the flared part of the tubing.
Also, you have the liquid line connected to the stainless tube jutting out of the back, and not to the brass fitting, right?