Those are all good questions Chris. I don't have the answers :-) - BUT - I did want to inject that the same logic applies to Electric cars. More oil and energy is required to fuel an electric car than a gasoline powered car, by the time the electricity gets from the power plant to the car...

So electric cars aren't an answer either.. people seem to forget this small fact..

I did manage to find this question/answer as to fuel economy (URL Below):
Okay, what about my gas milage?
At the very worst it will be very slight. Ethanol contains 97% of the energy that pure gasoline has. But because the combustion efficiency is increased, the slight reduction in energy content is compensated for. Most users will not notice the decrease, if any, and many people have reported an increase in fuel milage.

and then this:
Since it contains a high amount of oxygen it makes a car engine cleaner burning resulting in a cleaner environment for us to live in. Carbon dioxide emissions are lower thus reducing ground level ozone which people with respiratory problems will be the first to tell you is a problem.

It also says this: Carbon dioxide is another by-product in ethanol production and is used as a refrigerant and putting the fizz in our sodas. There are no waste products when ethanol is produced from corn.

And closes with this:
Ethanol is a very safe fuel, if you spill it it will not contaminate the ground water. If you drink it, you'll get drunk. Although if you drink large quantities you will suffer liver damage. In fact, if you drink just about any alcoholic beverage, you're drinking ethanol in one form or another. I was hard pressed to find any down sides to the use of ethanol as a fuel. There are reports that the emissions of an ethanol burning engine can adversely effect plant life, but studies are still being conducted to prove or disprove this.

Canie

• Ethanol as a Fuel