Yes you can homebrew biodiesel, but should learn a bit about safety and what can and can't be done in your local. You'll find lots of advice here and other places ... I would suggest you google "appleseed biodiesel processor" as a place to start.
As far as storing biodiesel in 55 gallon barrels ... its being done regularly. Its an easy way to keep it on hand and 'splash' blend with diesel to mix the percentage that you want to use. Some of us run B100 (100% biodiesel in warm weather) others opt for B50 (50%) or B20 (20% biodiesel). I'd start low and move up in percentage as the weather warms and as you get comfortable with the change in fuel. (often times there is a 'cleaning out' process that can plug fuel filters so be prepared to change one or two before your tank and fuel lines get cleaned out) I personally haven't had a problem in the two VW TDIs, but know others that have.
Best place to start would be finding a commercial station to purchase the low percent blend and add B100 from your "jerry cans" or 55 gallon barrel to increase the percentage slowly. You'll be at 100% before long and enjoying the clean, renewable, domestic fuel before long.
