I have considered the same thing. Recent advances have been made in the ethanol production process which will make ethanol even more attractive:
www.broin.com/pdfs/BROIN_PRESS_RELEASE.pdf I would recommend getting a good book on carburetors and alcohol. For straight ethanol, you will need 63% more ethanol than gasoline per pound of air. You will need to increase fuel delivery all around. My Holley book concentrates on methanol but the modifications should be similar. Additional holes were drilled between the fuel bowl and main well to allow more fuel without larger jets. Larger needle and seat, larger accelerator pumps and shooters, and electric fuel pump. Less centrifugal advance and more additional advance.
I don't think stainless steel is required for ethanol but the correct rubber components are needed. In my experience with 10% ethanol, the ethanol dissolves rust in the tanks and lines which is falesly blamed as corrosion.