Cheese - I think the E85 is 85% ethanol and that stuff can only be burned in multi-fuel engines designed to effectively burn it. The E100 that will be coming out will be safe to use in all cars, and motorcycles too, I'm sure.
As to whether it is an cost effective alternative to fossil fuels - maybe not the most cost effective but I think it is a good start to help us wean away from foreign oil. There are more cost effective bio-fuel products than corn; beets are one and so is sugar cane. Any food product high in natural sugar (fructose, I believe) is good for fuel. I guess that means that anything you can make 'shine' from is good to burn.
One of my neighbors makes his own shine and the last time he went somewhere for,ummm, either parts or somethin', he learned that commercial corn and produce growers can make their own bio-fuels and that they are advised to add a coloring agent to any fuels they use or mix with leaded fuels to prevent, ummmm, accidental ingestion...
Ya know, it is interesting. We hear, and usually rail against, the incredible amounts of money oil company execs get paid, especially when we have to pay $3.50 or better for a gallon of gas. Yeah, they make a lot but the government makes more. For every gallon I buy I pay about $1.50 in taxes - that's about $2.00 per gallon without all those taxes. About $1.00 is federal tax and the rest is state based. Somethings gotta change, even if it means smellin' like a distillery drivin' down the road........... Mikey.