Ethanol produces more power then gasoline that is why most major racing engines run on 100% ethanol. The problem will dissolve many type of gasket material & also it absorbs water easier. Replacing the gasket material to something that ethanol does not effect cures this problem. As long as the water is control it actually increases octane. When they first started making lead free gas I started using a water injection on my truck that I had increased the compression ratio & advanced the timing for more power. Doing some research I find that many 87 octane gas would not run in most vehicles because a lot of gasoline producer cheapen the production of gas because they know that adding ethanol will allow it to run in most cars.
Charlie
Charlie