Definitely take a look at the PopSci article cited above. It's a really good summary of whats in development right now. I know Corning is actively working on new technologies for catalytic converters in regards to improving their performance with diesel. Ultimately, you stand everything to gain so long as the US doesn't abandon diesel - which they cannot because of farmers and the trucking industry. The CRD (common rail diesel) technology in the new engines is what really made the difference in making them usable for everyday users such that you almost cannot tell its not a gasoline engine ... until they run out of gas and you're still going.
Now this is just me speculating ... I believe diesel is the way for America to go. However, I think the environmentalists are going to push for ethanol so badly that they're going to completely miss the boat on bio-diesel. There's a lot of research being done that shows ethanol isn't so great after all. One, if 100% of the farmers in America grew ethanol producing plants - it would not come up to half of the fuel needs to replace gasoline. Plus, the production of ethanol generates nearly as many noxious emissions as the gasoline engine they replace.
A friend of mine bought a Jetta TDI. Couldn't be happier with it. Doesn't smell, is quite, and gets over 50MPG (about 48 in town).
One thing to be aware of is that if you live someplace where it gets cold in the winter, you have to buy the right blend for the season. Most stations are pretty good about stocking their tanks with the right blend. A good rule of thumb is to buy diesel someplace where trucks buy it. (real trucks like 18 wheelers, not pickups. Ask a trucker, and they'll tell what they think of pickup owners calling what they drive 'trucks').

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RE: Biodiesel Hurdle
I need some help on the new diesels. I am looking at buying a VW Jetta TDI. It drives great, clean, awesome fuel economy. Its not my mothers slow, dirty, diesel from the 1970's. But I just dont know yet-- are new cleaner diesel autos part of the future? I want to say yes, but still doubt a little. Anyone have any solid incite they wish to share?
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