I don't think any electrical pump will do well on waste oil. Or at least so I've heard.
I've heard all that as well........but why? The chemistry doesn't make sence to me. If the waste oil is acidic, caustic, alkaline or whatever: it will affect aluminum, steal, rubber, and so on the same reguardless if that material is found in your tank, your IP, injectors, Holley Red/Blue, Duralift or whatever.
There is nothing special about the material found in an electric pump that isn't found in other areas of the IDI's fuel system......so if it's OK everywhere else..........why is it not OK in you fuel pump?
Without a better explaination, I'm not sold on the validity of that arguement.
Heath