Many people are mistaking the Methanol (Wood Alcohol) for Ethanol in this thread, Methanol is fairly corrosive. Ethanol will deteriorate NATURAL rubber, but does not seem to hurt the synthetic rubber that's usually used in fuel systems. also, if you are in the places where 10% ethanol is used, you will find out if you have none compatable material. (e85 does not erode/harden 8.5 times as much as E10, seems to be only slightly more reactive with materials)
Another simple way to recalibrate a EFI car on e85 is boost the fuel pressure. 10% seems to do it. (45psi to 50psi on a 95 saturn). This does make the fuel pump work harder, but has not seemed to cause any problems so far for us. Also, I have had no problems on a 89 camaro (TBI 5.0l) and 93 Honda Civic running at 50%-60% ethanol other than running rough for a few seconds in the winter (in Minnesota). Using 100% E85 has given a check engine light when running full throttle, and then it runs rough (running open loop) until the ignition is turned off and on, and the Camaro has had at least 30% ethanol for around 6 years now (I originally mixed e85 with regular unleaded for octane boosting, at that time it cost the same. No problems, in fact the injectors work better now than when I bought the car. (they used to get stuck when the car sat for over 3-4 days. 180,000 miles so far, original fuel pump, lines, fuel tank, and injectors.)
As far as I have been able to tell, you can put in 20% ethanol without rejetting a carb, 20-30% tends to run a bit lean, above that you should rejet it. One of these days I'm going to test exact amounts of extra fuel flow needed, since I have not been able to find out how much is needed for ethanol. (Methanol is around 100% more fuel, back 25 years ago when I used that for racing)
Our fuel milage is no worse than 5% worse if I'm not driving. (car is faster, and I tend to rev it up more w/ we run e85 in it; I should go back to regular gas for a few tankfuls on the wife's Saturn and see how much worse my milage is than hers to get more data points for comparison)
and I do not work for (or have investments that I know of) in anything related to Ethanol production or related industries, I just hate being dependant on OPEC. SMR