Yea, I suspect too that coarser is better, but it "must" be augered. I am sure there is an optimum size fuel particle. Dust would be tough to work with since the air wouldnt pass thru it for good combustion. So I would start by using about a 2 inch hole screen installed in the hammer mill, and experiment from there. This is not going to be as easy as the shelled corn burning, I can see that now as you guys are drawing out the details. The variety in fuel particle size will be a variable to contend with. The shelled corn has the luxury of being such a nice consistant particle size, for process control reasons.
BTW, the burner is designed to provide forced combustion air, introduced through holes in the sides and bottom of the burner trough. The burning fuel is also stirred on its way down the length of the trough, finally dumping out the end, hopefully as ash and clinkers. Ash and clinkers fall into a drawer for manual removal, but this too could eventually maybe be augered into a bin or a cart.