Hey Cheeso,
There are a couple of llinks here that you should find interesting.
Out here in the peoples republic of Kalifornia ethanol is added regularly to gasoline as an oxygenator to promote cleaner burning fuel. Currently, the mixture is 5.7% ethanol. I do not run race gas as I feel it is a waste of money, and loss of power in our bikes. The only "race" gas that would be of any benefit power wise might be VP's U4E found here
http://www.vpracingfuels.com/vp_01_fuels.html#leaded. But at 10 or 12 bucks a gallon I'll stick with pump gas. At least until such time that I am holding my 550 wide open all the time.
One thing about ethanol or methonal, is to be mixed with gasoline they are anhydrous. Which means no water. But, ethanol will mix readily with water. That's why it's not allowed in air planes, because at high altitudes there are very low temps, and if there is any water in the sumps of air planes which you drain on preflight, it will mix with the ethanol and freezed in the lines, or could cause carb freeze ups.
Back in the early 80's, gasohol was seen as a solution to "fuel shortage" [sic]. It was a 10% which is known as E-10. Only problem then was it was causing all kinds of problems with two strokes. I'm not sure whether it was the water that was getting absorbed by the ethanol, or if it was causing some kind of seperation of the two stroke oil and gasoline or what.
But, to answer your question. I have had no problems that I know with gasoline cut with ethanol.
Seems like there is a pretty good amount of info on the VP page. I'm sure that if you have any further questions you could contact them.
http://en.wikipedia.org/wiki/Common_eth ... l_mixtures
http://www.energy.ca.gov/gasoline/types ... oline.html
http://www.vpracingfuels.com/vp_01_fuels.html#leaded