Nope! Not illegal at all!! In fact, I believe that the current law is that 2000 Litres per year are allowed to be processed for personal use before excise duty is due (see Biofuel duty to be collected quarterly - 26/06/2007 - RoadTransport.com).
France (as is so often the case) is far more on the ball than we are in environmental matters. 5% of all diesel is biodiesel, by which I am assuming recycled oil.
As far as the differences go, biodiesel is more solvent than petro-diesel, and so, will clean the engine internals more, and dump all the crap in the fuel filter!!! [make sure it gets cleaned!]
The bad side effect of the added solvency, is that it may well attack any rubber seals, especially in the fuel pump. Some fuel pumps are suspectible to this, others are ok.
Hope this answers some questions.
Cheers ... Ian
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