Can anyone see any issue with printing with this type of filament?
Most of the filaments with particles are rather brittle. You will have to take extra care when loding the filament and check if the preload spring in the extruder is not to large. You can change it with another spring if needed.
Did you give it a chance?
I did read that the most particles of this filament bigger than 0.35mm. So may i have to use nozzle with 0.6mm to 0.8mm diameter. Get a spare nozzle and a precision hand drill. Its easy for selfmade.
Just FYI 
a very helpful link i Think regarding woodfill. LINK : http://learn.colorfabb.com/how-to-print-with-woodfill/
Apparently there is 2 types of woodfill acording to the page i showed the woodfill fine and the woodfill coarse. The fine one can be printed with 0,4 nozzle and the coarse need a 0,8 nozzle according to the makers of the colorfabb filament.
Would have been nice to be able to get hold of alternative sizes of the nozzle somewhere. Anyone on velleman that have any strings they can pull on?
// Marlark
I have a test string of woodFill Fine at home. Will test it in the upcoming week/days.
The most reviews says, the Laywood is not good, but mostly the people did print with a diameter which is not good for the laywood.
The woodFill is as reviews says, more reliable for the most printers. The bad different is that, that woodFill doesnt react on temprature changes, so you can not adjust the color of the printed part over the temprature. This is the intresting point for laywood -> thinking about a chess 
I will give woodFill and Laywood a try. Im now have spare nozzle and will drill up one of them to a 0.6mm or 0.8mm for the Laywood Filament. Then i will have my own opinion