Pulsejets, like turbines, will generally run on anything that will form a stoichiometric (combustable) mixture with air.
The Dynajet likes white gasoline but regular gasoline will also work. If you want to use methanol then you'll need to ensure you''ve fitted the atomizer jet with the largest holes. The Dynajet usually has the gasoline-sized jets fitted which are too small for methanol and won't allow enough fuel to flow.
Starting them takes a bit of practice -- you have to get the air-flow just right and a nice hot spark helps a lot. Check out my "Starting a Pulsejet" page at
http://aardvark.co.nz/pjet/starting.shtml
Note also that if it's cold where you are, the engine will be a lot harder to start. This is because a pulsejet atomizer does a lousy job of converting fuel into fuel droplets small enough to generate a combustible vapor. When it's really cold, heating the body of the engine itself before starting can help immensely. Even if you just raise the temperature so that it's just too hot to touch you may find it bursts into life far more easily.
As another poster has pointed out, these engines are incredibly sensitive to fuel-head so you need to get the fuel-level as close to the atomizer level as possible. Remember also that a single small bubble in the fuel line will cause the engine to stop.
The Cline regulator is absolutely essential if you're going to try and use the Dynajet in anything other than a control-line speed plane. If you try to use it in an RC or CL-sports model then the moment you put the nose up, the dynajet will likely stop due to the changing fuel-head.
Modern pulsejets (yes, there is such a thing) tend to inject the fuel directly into the combustion chamber as this not only makes starting much easier and eliminates the effect of fuel-head variations, it also allows you to throttle the engine down to as little as 30% of full power.
There's a heap more stuff on my website at
http://aardvark.co.nz/pjet/ if you're interested in pulsejets and I have published an e-book that has a lot more info.