I have been making Biodiesel for nearly five years and have used veg oil as well.
The 200 and 300TDI is a Direct Injection engine and should not be run on 100% veg oil without being twin tanked to start up and shut down on normal diesel but can run happily on a blend probably up to 70% veg oil 30% diesel in the summer and add 5-10% petrol in the winter.
The reason for this is that you will not get complete combustion when the engine is cold on a high percentage veg oil which could lead to ring gumming.
There is also the injection pump and lift pump to think of, the manual gearbox disco has a Bosch injection pump which is very robust and fine on veg oil but I think the auto has a Lucas pump which is much more fragile and best not to use any veg oil at all although you might get away with a low percentage.
The lift pump will have more work to do and if its weak might fail as well.
The TD5 has unit injectors and I wouldnt advise using veg in it at all as it will put them under a lot of strain but again you might get away with a low percentage.
Biodiesel and by that I mean proper biodiesel made by transesterification of vegitable oils with methanol and a caustic catalyst to produce FAME (Fatty Acid Methyl Ester) should run fine in any diesel engine although there have been reports of problems with Diesel Particulate Filters
Older indirect injection engines like the BMW M51 engine in the Range Rover can run on 100% veg oil without any problems as long as they have a Bosch fuel pump.
Any veg based fuel will start to gel at a higher temperature than diesel and may need additives in colder weather which could mean adding a cold pour point suppressor fuel additive, adding a percentage diesel which will have a cold pour point suppressor already added or adding a small percentage of petrol.
Petrol should not be added to fuel in a unit injector or common rail engine as it is much more likely to cause vapour lock.