Going back to our previous posts about the problems associated with ethanol's corrosive effects on fuel systems, where to buy ethanol-free gasoline, and why having a really good fire extinguisher may be your best defense against the sudden impact of a a car fire; the basic facts remain, ethanol (water based) and gasoline (oil based) do not really mix.
Well maybe for a few weeks, but after that, the two begin phase separation, the crux of the issue. The following episode of Jay Leno's Garage discusses a variety of conditions and some of the ways to beat "the beast".