I think the main problem with straight alcohol as a fuel is its affinity for water, which makes it difficult to fight corrosion in the system. Pure alcohol should work all right in a gas engine, but the mixtures won't be quite right, because it doesn't have the same btu content per gallon, etc., and evaporates very quickly too. I think a modern fuel injected engine might run better on it than a carbureted one, in part because alcohol is already present in modern fuels, and the systems are more tolerant of it, but they're probably still looking at impaired performance if they run it straight.
You do, at least in theory, need a license to make the stuff, though, since there's no inherent difference between fuel alcohol and moonshine, and you'd need a pretty big operation to get enough to go very far.