Alcohol is EXTREMELY corrosive to aluminum, magnesium and other die castable metals. It's also pretty mean on rubber too.
It burns much cooler, and requires a lot of heat to vaporize, so the engine stays significantly cooler than with gasoline.
Alcohol engines can use more compression, or turbo boost without detonation, and make more power.
Methanol bought in a 55 gallon drum is about half the cost of 110-120 octane racing gas, but you need to burn almost twice as much.
The worst thing about alcohol in two stroke engines is that the alcohol tends to break down the lubricating oil, as for the turbo lube, I belive that the turbo had a dedicated (turbo only) lube system.

 

Hey lars did you ever stop by the dealer to see what happened? If you did, how much did it make on the dyno and did they drag race it against anything?