I've been wanting to build a waste oil furnace for my shop. I googled and surfed yahoo groups. It looks to like the basic procedure is to make a shell and then keep building burners until you get one to work.
I intend to start out with the Roger Sander's version of the MEN drip furnace with its conical burner but, reading here, I really like Old F's upside down bowl burner and will try that out too before I move on.
I don't expect to add to the science of burning waste oil, I just like to post what I've do in my diary...
I got an old electric water heater on Friday. "Old" was nice because the tank was wrapped in fiberglass and a lot easier to get out of the liner than if it would have been if ti were encased in blown-in foam like the newer ones.
Using dimensions from the plans, I used a 4" hole saw to cut the center hole for the air pipe and a sawzall to cut the 6" hole for the flue and rectangular opening for lighting.
I was eager to light something in it :-) so put a little hibachi of coal in it and a makeshift conical burner. I don't have anything attached to the furnace yet so I just covered the top air hole and stuck the flue pipe in. I poured some motor oil on the coals and tried to light the oil. No. Threw some paper on them and lit that. Still didn't light the oil. I thought oil would be easier to light! Splashed a little napha on the coals; that did the trick.

I hope to get some rudiments of the drip system working tomorrow. Today, I started out by pouring about a half of cup of oil down the middle. That burned but wasn't interesting. Next I put the cone I made on the coals and ladled some oil on to that. The oil boiled and soon the vapors lit, wow it roared!
I experimented ladling in less. (Turns out that my thin cone had burned through and some was leaking onto the coals.) About 1/8 cup looked like a good amount:

Once the vapors ignited, spiraling columns of flames were produced. As the oil burned, the pool got smaller but still burned fiercely. I really can envision a steady drip stream holding the pole at a desired size (which will allow me to adjust the output of the furnace.)
BTW, I don't have a chunk of aluminum to make the conical burner the way Sanders did so I just bent a piece of flashing into a cone a brazed it shut. In addition to reflowing my brazing, the flame burned though the thin alu.
Well, that was fun! Next I'll post more when I do more.
- Ed.