From: en.wikipedia.org/wiki/Ethanol
To match the detonation characteristics of gasoline at high-power settings, the utilization of ethanol-based fuels requires fuel-flow volume increases of nearly 40%. This means that currently-published performance information is not accurate when using ethanol-based fuels.
Ethanol-based fuels are not compatible with some fuel system components. Examples of extreme corrosion of ferrous components, the formation of salt deposits, jelly-like deposits on fuel strainer screens, and internal separation of portions of rubber fuel tanks have been observed in some vehicles using ethanol fuels.
The use of ethanol-based fuels can negatively affect electric fuel pumps by increasing internal wear and undesirable spark generation.
E-85 is not compatible with capacitance fuel level gauging indicators and may cause erroneous fuel quantity indications in vehicles that employ that system.
E-85 is capable of dissolving large amounts of water at conditions down to -77°, thereby impeding the detection and removal of water from the fuel system.
E-85 experiences heavy evaporation losses.
Ethanol has only 66% of the energy content of gasoline (in terms of lower heating value with units of "BTU/US gallons").
Some believe butanol fuel is a better option since it can be made from the same corn and other natural products. It works in all existing cars not just flex fuel ones. It gets better gas-mileage than gasoline or ethanol and provides better octane levels. It also pollutes less than ethanol or gasoline per mile.
I felt that with all the seemingly endless rhetoric regarding the positives and negatives regarding gasohol, this link would help clarify many of the misconceptions.
Ethanol, in a nutshell, represents an attempt by the powers that be to provide a RENEWABLE energy resouce alternative...THATS IT!!!
Despite all the rantings and ravings on the virtures of fossil fuels; oil, natural gas (with some exceptions), and coal are NON-RENEWABLE energy resources. Once it`s gone...it`s gone forever guys!
Curiosity yields evolution...satiety yields extinction.