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Most of the landfills around here burn used oil in their oil burning heaters. You might check with your local landfill about how they are set up.
My knowledge of pellet stoves is that they burn hot, but they are touchy because the mechanism that slowly feeds pellets to the burn chamber can easily wear out or get jammed, and they can be expensive to replace parts. Much more of a headache than a woodstove, and as far as feeding it oil of any kind - my feeling would be that it's too dangerous to mess around with. Get a dedicated oil burner that's meant to use fluid fuel instead of solid fuel.
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