Hi there,
I don't know how much E85 you can use in your engine without making any mods to it. I do know that it is best to start with about 10 % E85 in the tank and then slowly increase it. I use 25% E85 in my 4A-FE without any problems. If you want to drive on 100% E85 you have to change to another fuel pressure regulator. The engine needs more fuel with E85 and it will get more fuel if you increase the fuelpressure. Here in Sweden most people put Malpassi regulators in their cars. Then you have to get the ignition a bit earlier. I can't say exactly how much. You have to test on your own engine, but I would guess about 5 degrees earlier.
I'm about to do these mods to my engine this summer, but I don't know if the fuel regulator will fit in the fuelrail. I don't want to have 2 fuelregulators in the enginecompartment.
There is a good site here in Seden about all this.
www.etanol.nu