Wow this is a long thread...I confess I did not read it all, about half.
To the question is it OK to use sump oil for bar oil, the general consensus seems to be no. However the reason given are not very convincing.
Damage to the saw, contamination of the ecosystem and carcinogenic properties.
Damage to the saw...I would not use sump oil straight from the sump, but keeping it for a few weeks in a container ideally a long narrow one, should decant most of bigger size solids. The lighter particles of carbon will stay in suspension but those are not abrasive.
Contamination...What is the difference between new oil and used oil? Both are just as bad for the ecosystem.
Cancer...If you think that by using new oil you are OK, I have bad news. Both new and used oil are petrolates and therefore considered carcinogenic.
Sump oil can be recycled and used again as bar oil quite safely if you know someone that has a centrifuge like this
http://www.separationequipment.com/pdfs/emmiePD.pdf
Of course buying it will not be a good idea since you can buy bar oil for many years for all the members of this forum for the price.
Sump oil if put through a centrifuge can be also used as fuel for diesel engines up to 20 % mix with normal diesel.
As for the earlier post that states you can run a car on waste vegetable oil mixed with methanol, I am afraid there are a few inaccuracies in it.
You can run a diesel engine on straight WVO but it requires a few modifications, heaters for the oil and a system to switch from diesel to WVO and back before stopping the engine. Also in colder climates it is a bit of a problem.
As far as the addition of methanol, no, do not try that at home. WVO is converted to BioDiesel by adding a mixture of methanol and potassium hydroxide, that later needs to be washed out to get pure biodiesel. Plenty of info on the net.
To run a 2 stroke engine on WVO plus methanol? That must be a joke I suppose...unless there is a diesel chainsaw engine I don't know bout?