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.
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