Im new here...but spotted this thread.
I have run a 2.25, 2.5TD, and a 300TDi on veg oil and I run this forum on the subject here: www.vegetableoildiesel.co.uk/forum
Most land rover engines can be made to run on veggy quite happily...however all of them require a 'twin tank' conversion. The idea being you can start and stop on diesel and change over to veg when the engine is hot - and by using a heat exchanger in the fuel line, you can ensure the veg oil is hot and therefore wont kill your engine.
The 2.25, 2.5, and 2.5TD all have lucas injection pumps. These have proven to be quite fragile on veg. If you use veg in these engines when the veg is cold, you will deprive the pump of lubrication and the rotor head will seize, either breaking the timing chain, or shearing off the drive shaft. Either way...its nasty.
The TDi engines however, have a bosch injection pump - these have proven to be quite robust on veggy...however the fact that they are direct injection poses a new set of problems: When the engine is cold, the oil will not burn correctly (if at all on a very cold morning) in the cylinder. It can then condense on the cylinder walls and will both cause coking under the piston rings, and get into the sump oil where it will cause a chemical reaction that will polymerise it. Again...not very nice.
I dont know much about the TD5...but it will require a twin tank again. I would probably give it a go if it was mine...but I wouldnt advise anyone to try it!
Have a look in the archive section of the forum above. There are some posts in there that explain things a little better. You could also look here: www.inhislandy.co.uk and click on 'veggy pages'. Mostly geared towards land rovers.
As for making biodiesel...in short...heat it up, add a methoxide mixture made up to the correct concentrations and volumes by doing some calculations and titrations on the oil....mix for an hour or so...wash...dry...put it in your landy!
Customs and excise will also want a slice if you are in the UK and your landy is road registered (doesnt matter if it is only used off road...if it has number plates, the fuel must be taxed). Technically the tax rate is 27.1p per litre for both veggy and biodiesel, but there is a bit of a fight going on at the moment....
Any questions?