First, see what happens when you unwrap it. If there are no bends I would not think it would make a difference.
Second, If the flow meter is not working try this, Remove the indicator and some tubing. Put water or blow through it to see is the indicator moves freely. If so there may be a problem with the pump inside the resonator. There could also be an obstruction somewhere else. Lets try this before looking else where.
If the flow meter does indeed move freely, disconnect the tubing from the computer all together. Place the suction tube into a bowl or bucket. Then provide power to the resonator. There are a number of ways to do this, the easiest is an old at power supply. You can use an atx, but you have to jump to connections. It is safe, just ensure you do a search on the net to find an illustration. Unless of course you are already familiar with this.
Try to run it without the flow indicator, and then with it. Oh yeah, hold the discharge end above the bucket to see how good the flow is. There is not a whole lot to a flow indicator, but if it was stuck it would obstruct flow enough to cause the issues.
If it is this, you can resolve the problem cheap enough, just buy a new flow indicator, or get in touch with zalman for a replacement. You said you can feel the water moving through the lines, but if the pump is running and the flow restricted you would still feel it running but with extremely low flow.
Also, do not know how much heat may be picked up, but being wrapped around the tower that dissipates the heat may also cause the cooling to be depreciated some.
I will be waiting around to see what you end up with.