I don't know if it works or not ,but for the $ 2295 price you can buy tons of pellets, A whole lot easier and better quality.
These have been discussed many times at that "other" website. After the $$ for the unit, the power source to run it (see pic of driveshaft in your post), and then securing a large supply of sawdust, then add in the fuel for the power source, your time, and the fact that it makes pellets pretty slowly compared to a large commercial unit, the consensus was that it was not viable. As will711 mentions above, for $2295 + $ for power source, etc, etc, .....well, you get it.
I have a TON of sawdust, well more like several tons. My bin is 4x8 x4ft tall and I fill that every couple days.
Nate,I your case it might be viable, but wood pellet units require a double reduction gear drive( that pic isn't) particle size 6mm max( 1/4") moisture content 8% max, I do not know what effect mdf and plywood sawdust would have on production. I have a bunch more info pm if you want.
The price of the unit and power source aren't all that's required. You could get by making small batches, But to really crank out enough to heat your house and maybe some friends. You'd also need several other things like a good drier or ample storage on racks to dry them. Then there's the storage. And if the fiber is too large/coarse. You'll need a hammer mill. The list goes on. It would be fun to play with, But not all that as you'd be a slave to making your heat. Lots of work-prep need's to go into the dust. It sounds easy, But you'll need to keep an eye on moisture content.
Please don't, I get my share of that. Must have been the same when the Persians determined the earth was round!