In the middle of tidying up my system to make life easier.
Currently I have one 205L drum with the top cut off (couldn't get a supply of clip tops that make this easy!) and a 22mm tank connector fitted near the bottom. The second drum has a standard immersion heater boss soldered in near the bottom, a 22mm fitting on the bottom, dropping through a central heating pump and being pumped up into the top via a pipe with a bunch of holes in.
A bit of plumbing and a bunch of full bore 22mm valves to isolate/direct flow and finally a couple of sock filters hanging over a final resting drum gets me to clean and burnable oil. Not the best setup, but works for now.
Basic approach: suspend an old bed sheet over the first drum (I support mine with a chicken wire 'baskets' to stop the edges of the sheet ripping), pour the waste oil through this. Best if you have the space to keep the oil settling for as long as possible to get the real manky stuff to drop to the bottom first and only pour off the better stuff. The bed sheet will filter out loads of stuff and also eventually clog up with semi solid fat custard. That stuff can be scrapped off with a ladle a few times before the sheet needs replacing.
When there's a reasonable amount in the first drum, open up a valve to pump this stuff up into the second drum. When full (or at least fully covering the element with oil - watch this cos a bare element gets hot and can cause big bangs!) turn on the immersion heater and start pumping the oil from bottom to spray in the air into the top, oil only needs to get to 50-60 degrees and the water will evaporate while it's being sprayed in the air. The drum being topless and having fresh air blown over i by a normal fan will speed this. You being topless will only save on the washing machine usage as you gradually cover everything in waste oil!
After a few hours pumping round you should be in possession of cleanish dry oil. Test a bit of oil in a hot frying pan, any water will sizzle or create bubbles as the oil gets hot, dry oil just sits there and eventually smokes. Wet oil will destroy your fuel pump/injectors so get this right.
Once oil is dry, you need to filter it to 1 micron to stop blocking the vehicle filters. Only ever filter at ambient temps because hot oil will pass through and then form solids when it cools. I slowly pump from my heating drum into a set of sock filters suspended over a 30L mango chutney drum and let gravity do it's thing. This then empties into a 60L barrel I take to the car and fill the tank with.
In cooler months, you need to thin the oil with either diesel or petrol. Petrol does this much better so you need less and petrol also strips out any residual water or other tiny floaty bits, so best to mix outside the tank a few days before pouring in.