that would be a good idea....here in canada we store our spent fuel on site. starts off in liquid cooled storage while its still highly reactive and then into dry storage for a few thousand years lol.
i've actually read this on other web sites, so i'm quite hopeful that this is accurate. we've known this is possible for years, just never researched much. the US tried years back but at the start of nuclear power everyone wanted bigger....not some puny little thing. plus i read the research team wasn't very good and embezzled a lot of the funds.
if anyone is curious look up what a breeder reactor is. this is a similar idea.
I've heard Canada had a working breeder reactor known as the CANDU system.
I know plutonium is a possible product from a breeder reactor, but I would think with something as active as it, you'd just leave it in the reactor for fuel. Plus, there are different types of reactors.
Besides, the current waste will work just fine in a dirty bomb for terrorists. A breeder reactor will reduce the amount of that stuff, and it will be easier to store and protect the smaller amounts of whatever waste it makes. On a cheery note, it's probably easier for the bad guys to get a nuke missing from Russia than the waste at a nuclear plant.