The cost of the "equipment" is directly related to your own resourcefulness. The more "junk" that you are willing to collect for free, the better. I use two 55 gallon drums, and a trolling motor, as well as a cheap liquid pump to transfer between the barrels and eventually to the fuel tank.

As for making the stuff - best to do a search on the web. Homepower magazine had a very detailed article instructing how to make the fuel in their issue #72. You can order back issues from them at their website: http://www.homepower.com The process is kinda fun once you get beyond the ick factor. In general, I like to acquire 40 gallons of used oil. The formula is a 20% by volume of methanol method - designed to minimize or eliminate the need to "wash" the fuel. The article details these processes.

Using the fuel the most immediate change is the odor. Biodiesel smells quite literally like a hot fryer with a hint of whatever was originally cooked in it (typically french fries ). Particlulates drop quite a bit, and what is left is usually grey/white in color instead of black. It is a low emissions fuel in the name of greenhouse gases. My main vehicle (my Dodge truck) that used the stuff had no noticeable effect on driveability and fuel economy.

As for making the stuff, all that is really required is a bit of common sense in dealing with the chemicals. You do make a NASTY caustic material to mix with the oil during the creation process. The end result is two inert products that can be handled safely - the fuel (on top) and a gunky soapy material on the bottom. Care needs to be taken to not get some of the "in between" stuff just above the soapy gunk.

Final note: If you use this in an older diesel, it WILL remove all of the buildup of crap from the tank and fuel lines. Plan on replacing filters a couple of times after starting using the stuff.