Good day to you too old chap (from another Pom, who hasn't quite got this Aussie accent sussed yet
)
I hour at 50C is enough to make a complete reaction, so as long as the temp stayed above that for the whole time you were mixing then that would have been enough. FYI I usually react mine for 1.5 hours, not strictly necessary but a bit of extra safety margin.
As for the 3/27 test that can fail due to a variety of reasons, such as water or other contaminants in the oil "using up" some of the methoxide, causing an incomplete reaction. Or you didn't use enough KOH possbily by titrating inaccurately or not using enough base.
You can try increasing the base KOH from 7 to 8 or 9 and see if that helps. The only problem with that is it increases the chances of an emulsion during washing, as you've already experienced. Just do the first couple of washes very gently, or hot water will decrease the chances of an emulsion.
As for the existing emulsion I would drain as much water off as possible, then take the good biodiesel off the top and deal with the emulsion layer separately, with heat, time or various other methods as described elsewhere (use the search).