If you smell ethanol when driving, I'm pretty sure that means it's burning very inefficiently Running rich? I don't have a lot of experience with it, perhaps it has to run rich?
I mean, optimally it would completely combust to pure water and CO2.
Did you mod inside the engine? (guess so, otherwise it wouldn't detonate) . When using ethanol A/F ratio needs to be adjusted, otherwise it'll run lean and inevitably damage the engine, but i hope you know that. Have you tried any octane boosting fuel additives?
I had to mill the head due to corrosion on a engine that already started at 11:1. You forgot to mention that you have to also advance ignition timing because the ethanol burns a lot slower.
Fuel additives do not work.
When you are running flat out with injectors that are maxed into a system that fires all 4 injectors at the same time, that normally was not designed for use at 7800rpm it ends up smelling like burning alcohol.
I am happy with ethanol, no more detonation, tons more power, the smell does not give me a migraine (Hatch seal leaks and the fumes suck in every once in a while), and I still get 24mpg.
Back on topic....
I have been looking into getting a Mercedes diesel wagon for a very long time but I do not want an automatic. What do they use to do a manual swap on a W123 300TD? I found one for sale for $900 that will not stay running (Injector related) and am considering it if I can put a manual in it.
My diesel truck is a 5-speed manual hooked to a 6.5L turbo diesel (worst injection system I have ever seen). Running a biodiesel blend.