I've been playing with E85 for two years now and it has potential for performance applications but there are some things that have to be considered on a swap:
First you said you ran a steel fuel line? Better change that to stainless steel or you will start having problems with rust particles contaminating the fuel system. They plug filters and hang injectors open and cause general hate and discontent. The gas tank is another problem area if it's steel. Ethanol is hygroscopic meaning it attracts water. This water causes serious corrosion of steel. Ethanol also has corrosive effects on bare aluminum which can destroy it and cause the same particle problem. Stainless steel, some plastics(Teflon), and certain anodized aluminum are needed for the fuel system. Most fuel filters for performance alcohol use are intended for race engines with strict fuel quality control and use stainless steel mesh elements that only filter down to 100 microns. At least 40 microns is needed to stop all of the particles that can cause fuel system trouble. 5 or 10 microns would be better but I haven't found a high pressure, alcohol safe filter that filters that low yet. The best filter I've found is the Mallory 3181. It's a 40 micron alcohol compatible in-line filter for high pressure fuel injection that flows up to 500GPH.
Second it takes approximately 30% more fuel with E85 to make the same power as gasoline. You have to alter your fuel delivery accordingly. This also means that at the same power level your fuel tank will go empty way faster. This isn't a problem for some applications but can be for endurance racing where you don't have anymore room for fuel.
Third is that alcohol runs considerably cooler than gasoline and therefore needs more compression to make the same power as gasoline in a given engine. I'm not saying that an engine built to run on gas can't run ethanol, just that it won't make as much power as it could if it had more compression (or boost). The burn rates also require a complete ignition re-map to get power back up.
This barely scratches the surface of E85 for a performance engine, and I'm still learning as I go but I hope this helps..I think forced induction fuel injected engines would be a great place for this fuel to really make some power! I look forward to hearing your project shapes up.