On Jan. 16 of this year, Lexus ordered a massive recall of certain 2006 to 2008 models, including the GS Series, IS and LS sedans. According to the recall notice, the problem is that "Ethanol fuels with low moisture content will corrode the internal surface of the fuel rails." In layman's terms, ethanol causes pinpoint leaks in the fuel system; when leaking fuel catches your engine on fire, that's an exciting way to have your insurance company buy your Lexus. Using ethanol will cost Toyota (TM) untold millions.
And there are active lawsuits from boat owners; ethanol broke down the resins in their fiberglass gas tanks, destroying their marine engines. Additionally, those who deal in small gas engines for lawnmowers, edgers, and weedeaters have quickly learned that, as Briggs & Stratton's (BGG) Web site warns, "Ethanol-blended gasoline can attract moisture, which leads to separation and formation of acids during storage. Acidic gasoline can damage the fuel system of an engine while in storage. B&S strongly recommends removing ethanol-blended fuels from engine during storage."
http://www.businessweek.com/lifestyle/content/may2009/bw20090514_058678.htm