CL, I'm not aware of any studies using sewage sludge, but are you sure BSFL couldn't break it down? I don't think it's accurate to say that BSFL prefer green wastes. They've already been used to successfully process poultry, swine, and human waste. In the south they've been called "privy flies" because they used to inhabit outhouses. ESR has designed systems that process animal waste at commercial levels and they're working with BSFL-based toilets for humans in Brazil and Viet Nam I believe. Maybe Robert (thebiopod.com) will have some advice for you about this.

Having units set up at restaurants would be fantastic, but unfortunately I think it might be tough to sell the health dept on encouraging any type of fly around them. Maybe someday...