Genesat1, I have tried 20% and still have problems. I have done a lot of experiments lately. Virgin PETG (I use Estar) pellets extrude great. Regrind has rough edges. My theory is that the regrind rough edges melt easier and stick to the drill bit near the hopper and impede the regrind from being carried down the drill bit to the melting chamber. If you look down into the hopper you can see regrind coming back out. The regrind must primarily move along the bottom of the drill bit due to gravity but the stuck pieces block the flow and it comes back out along the top of the drill bit.
So I changed the barrel insulation and wrapped only the heating chamber so the barrel (and hopefully drill bit) would cool off bear the hopper. I even had a fan blowing on the pipe right next to the hopper. But this didn't seem to do much. But I still think it is a good idea and plan to experiment more.
But what I am doing now seems to have somewhat positive results. I redesigned the hopper with an overhanging wedge above the entrance to the drill bit. The wedge helps to stop the regrind coming back out the drill bit.
Also, I borrowed a Filabot from work and it could handle 100% regrind perfectly. I see a few design differences from the Filastruder like 1) higher RPM, 2) more drill bit exposed in the hopper (4 traces vs 2 for Filastruder), and 3) more insulation on the barrel. I don't see how the extra traces on the drill bit can help especially if it all gets pushed back out again. Incidentally, the Filabot isn't working that great with the regrind now. I think if I flush it with virgin PETG pellets then it will work again.