I actually had almost 1/4 tank of premium in the tank when I changed the pcm and filled it up on e85. The car misfired under boost and all sorts of crap. I didn't feel comfortable accelerating hard until about 3 full tanks. Best thing to do is run your tank as low as possible then fill all the way up on e85. And don't go WOT until after you are on E again and fill back up.
You don't even need an intercooler on E85, It actually kills more KR than a full size IC because it burns so cool and the octane is so high. I wouldn't convert for power gains without some headers and a good exhaust. Remember you have to push 30% more of this stuff through the engine...
I didn't drop a pulley size. I had a Knock free cam/ Full size IC setup. I probably saw a small increase (similar to slightly higher compression is the comparison I can come up with) From the 30% more fuel volume flowing through the engine. The rest of my power came from the 3* of extra timing and extra cooling. My tune is very conservative because I wanted to be safe with the mail order and dial it in later on. Even still, I can feel a BIG increase in power.
The part that amazes me is, I can probably run 23-24* of timing and also drop to a 2.55 pulley without any KR. But I will probably pulley down for the track and only add 1-2 more degrees of timing. I don't want to pop my 15 year old head gaskets.