I dont know if anyone's been watching Fifth Gear over the last few months, but they've been running a diesel Merc C class (or E class? :? ) on used veg oil from fish and chip shops. Johnny has been running it for either 6 months or a year (cant remember exactly) and it's still running fine. When they first did it they ran a timed race on both diesel and oil, neither were significantly faster than the other.
I dont know about your engine specifically, I dont know about any engine specifically, but I'd quite confidently run a BMW engine on veg oil.
If you are worried about having to change filters more often or bits clogging up pipes then you can get processing kits to filter the oil in advance:
http://www.dieselveg.com/waste_oil_processing.htmThe government has just changed the law, so you no longer need to pay duty per each litres of oil you use (unless you use some rediculous amount - 2000litres a month or something), so depending on where you get your oil from, you can run your RR for FREE!:D (ish)
p.s. Make sure you eat before you drive your car on veg oil otherwise you WILL end up buying chips on the way home!