What you are describing is SVO, and takes modifications to the fuel delivery system to work.
Homemade biodiesel is a different thing, cooked out of the SVO in a long heating and mixing process to get the glycerin out of the fuel using methanol.
I agree your friend is not doing things right and the problems you are finding, but that does not mean properly processed homemade biodiesel is all bad.
You need the equipment and process to do it right.
http://m.youtube.com/watch?v=O9MtCMebBHo
These homemade units and methanol isn't always safe, but it is an interesting process.
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Today's Featured Article - Listening to Your Tractor - by Curtis Von Fange. Years ago there was a TV show about a talking car. Unless you are from another planet, physically or otherwise, I don’t think our internal combustion buddies will talk and tell us their problems. But, on the other hand, there is a secret language that our mechanical companions readily do speak. It is an interesting form of communication that involves all the senses of the listener. In this series we are going to investigate and learn the basic rudimentary skills of understanding this lingo.
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