Just some anecdotal data to further the thread. I have an 87 300D Turbo which began running a blend at 293K. It currently has 344K and shows no performance degradation. I also have a 98 E300 Which had a Greasecar two tank system and FPHE installed at 148K. It now has 200K and also runs like new. Had I burned d2 for that 50K I would have spent @$4400 on fuel. I am sure I have spent less than $400 on supplies in the last two years. So I have saved around $4000. I also enjoy the green aspect but most of all I can tell shiek abdul to take his barell of oil and shove it.

To answer the OP, peanut oil will work great but you really do need more heat. At least add a heat exchanger.

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Muleears
'07 E320 Bluetec 133K my DD
'04 Jaguar XJ8 VDP, 34K
'10 Hyundai Accent 60K Grocery Getter
'02 VW Golf soon to be on the road again
'97 E300 Diesel Son's DD
'61 VERY tolerant wife

Hampton Roads, VA USA

Gone but not forgotten:
'67 250S 95K
'86 300SDL
'87 300D Turbo, 364K! R.I.P.
'98 E300 Turbodiesel, 213K
'02 S420, 164K
'01 Prius 138K