The last 275 gallons of biodiesel I made cost me 0.89/gallon (0.64 for methanol and 0.25 for sodium hydryoxide). This was last September. It is cost effective if you can get free wasted vegetable oil (WVO). The restaraunt I used to get my oil from closed, so I haven't made any since. I started making biodiesel in 2008 or maybe 07 for my 98 cummins. I used to make 25 gallon batches and then top off at the pump. I went from $25.00 (at the pump) fuel ups to over $100.00 once I stopped making biodiesel. Oh do I miss my biodiesel.
I'm not sure about WVO, but biodiesel will eat through rubber products. Any rubber seals or fuel lines would have to be replaced. WVO is more viscous than bio, so cold weather starting is more difficult. WVO tends to gel more in cold weather. The conversions kits I've seen on the market for WVO are nothing more than some type of heater to heat up the oil. You start driving using regular diesel and once the WVO warms up, you switch over to WVO.
Before I started making bio, I did some research and quite a bit of people run WVO in their trucks. Getting it cleaned up is the most important step. No particles and NO WATER. I used a centrifuge from dieselcraft to get my oil cleaned up and just heat up the oil to boil any water out.