Welcome to the site. Sounds like some interesting projects.
I think E85 has some great potential IF an engine is designed to run on it. This flex fuel engine stuff really gives it a black eye.
I'm curious why you only went to 13:1 CR? Not that I have much experience, but I've heard you can run much higher.
I don't agree that it takes as much energy to make a new car as the fuel it uses during its life. Even the highly critisized Prius (high energy to make, low fuel use) uses way more energy to run than is used to produce the vehicle. Of course my only info here comes from Toyota so... In any case, I still love to see old cars running around. I've had a few of my own over the years, currently working on a '51 F-1 pickup.
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