Update 06/2008: Since the writing of this post, ethanol conversion kits are now available. You can purchase a e85 ethanol conversion kit here.
It sounds like a simple idea. Converting a car from normal unleaded gasoline to ethanol 85 should be easy with the aid of a conversion kit. Unfortunately, this is not the case, there are no conversion kits available that will pass EPA standards.
In the 1990’s the U.S. Environmental Protection Agency (EPA) put laws into effect that made it rather hard for such conversions. The laws basicly state that if there is a conversion to be made for any type of alternate fuel, the exhaust must be as clean or cleaner than gasoline.
An excerpt from e85fuel.com "Today, 99.9 percent of the vehicles that are capable of operating on alternative transportation fuels are produced by the original equipment manufacturers such as Ford, General Motors, and DaimlerChrysler. Engineers from these companies are able to design and build vehicles that meet the EPA exhaust emission standards. These companies also are required to warranty the exhaust emissions from these vehicles for 10 years or 100,000 miles, something very few conversion companies are able to accomplish."
At this point there are only two options, convert your car with a non-certified EPA conversion and fail inspections or the better idea of purchasing a new car that is e85 ready. There are many options to choose from, you can view all the cars available at e85fuel.com or you can purchase an e85 ethanol conversion kit here.