Sure thing, here is one of my sources but unfortunately it is in swedish, I have not yet found this clearly explained in english. Sport Pilot (and downunder) are correct if you only talk about pure ethanol but apparently it is the E85 mixture which is problematic. So much so that a special "flame lock" should be installed in swedish fuel station equipments for pumping E85. This is to prevent a fire to travel down into the E85 cistern.
http://www.srv.se/templates/SRV_Page____14874.aspx
A warning is also given that an E85 fire is harder to quench than a "regular" gas...

...fire is but the exact reason is not given.
Hope this helps guys and BTW I have now milled the crankcases of one Saito.56(-1.0mm) and one Saito.72(-0.5mm) to make them more 0%nitro and/or E85 compatible. Aiming for a compression ratio of about 13/1...waddayathink downunder..??......Cheers/Harald
PS..found a reference in a swedish source to "SAE Technical Papers Series 950401" but I was not authorised to download it myself...[:@]...maybe someone else out there can help...DS