I completely disagree with Keystone. 10-12' of 3/16" ID line is what many, many people use without a problem, and 12 PSI @ ~4 deg C is perfect. 8 PSI (as Keystone suggests) is only about 2.1 volumes of CO2 at 4 deg C, which is rather low for most styles of beer. And 8 psi through 20 feet of standard (non-barrier) 3/16" ID tubing would be a very slow pour indeed.
12 PSI with 10 feet of 3/16" ID line should be fine. You don't want to turn the pressure down, or yes your beer will lose carbonation. Having it at a lower pressure will also make it "overcarbed" relative to the current pressure, which will result in more foaming until everything is equalized.
Try this (with is back at 12 PSI): Pour a foamy glass of beer, then immediately pour another glass. Is the second glass also foamy?
Chances are the first "burst" is foamy because the lines and faucets are significantly warmer than the keg, so CO2 is coming out of solution. This is a very common problem, mostly with draft towers. If this is the case, you can install a small PC fan in the keezer to help keep the air moving and prevent temperature stratification. Without the fan, the cooler air will settle and the top of the keezer can be 5+ degrees warmer than the bottom.
I should add that I'm assuming the beer isn't overcarbonated at 12 PSI. How'd you carbonate it? If you used the "set and forget" method at 12 PSI you should be good. If you used a burst carb method, there's a chance that it's overcarbed and that could be the issue.