Although considered essential to the modern lifestyle, transportation is one of the most difficult areas of development for the self-sustainable homestead. The current infrastructure supports fossil-fuel powered vehicles to such an extent that most people can't see an alternative. There are many alternatives, however, and each has its benefits for the type of travel and transportation it is designed for.
The first step in deciding where to put your brain and muscle power as regards transport is to assess your current transportation needs. If most of your trips are within 25 miles from your house, human-powered, animal powered, or electric vehicles are probably a good solution for you. If you need long trips or work vehicles, converting a combustion engine to a renewable fuel will be your likely path.
Combustion Engines
Combustion Engine are the first area of exploration for most DIY minds. There are lots of fuels to be used out there, and some of them can even be produced in your backyard, garden, or compost heap. The Internal Combustion Engine, or ICE, is what currently powers the world, from cars to planes to trains. Steam and Stirling engines are External Combustion engines, which are an alternative engine type to the ICE.
Electric vehicles
Electric Vehicles have presented themselves as a viable option for most transportation needs. While current battery technology limits their range, speed and cargo space are no longer issues. There are many routes to an electric vehicle, from converting a regular car or bicycle to building one from scratch. Charging can be done through the grid or through renewable sources like wind or solar at home.
Personal transportation
Personal Transportation, whether it be human or even animal powered, is one of the oldest forms of transport. From plain ol' walking to rickshaws to bicycles to pedal-powered airplanes, the options for using the human body as a power source are virtually unlimited. Most people use bicycles, but even with the bicycles you have a lot of options and considerations from mountain bikes to recumbents to trikes or even twikes! The advantage of the human-powered vehicle is that it accomplishes several goals in one design. Exercise, transport, and fuel independence all in one!
Flying
Flying is a method of transportation that has become more appealing to the DIYer in the last few decades. Hundreds of planes, gliders, helicopters, and autogyros are available online as plans, kits, or ready to fly aircraft. Personal flying can take many forms from powered paragliders to full-blown jet airplanes. Regulations are tight for aircraft, and choosing a method must involve an examination of the regulations for your state or country. Flying can be rewarding, but obviously, there are more risks involved than when staying on the ground. Be prepared and informed.