Did it run better on #2 but still bad on WVO?

Are you sure your filter is a water block filter? if not then the water will go right through it like fuel.

Water in a diesel is pretty easy to spot, they generally run like crap if at all since water won't combust like diesel. This is also why all diesels have a water block fuel filter.....

Drain your WVO/#2 mix and let it settle for a few days, you will see the water on the bottom if its in there.

Diesel Rod