I work in Indy Car racing, and we race with 95% ethanol, 5% is gasoline just so we lush racers don't drink it as cheap booze.
The only major changes we've made was to Kalrez o-rings and sock filters (as used in street cars) in the fuel cell. We(the entire series)have never had a single issue with water in the fuel, but we only let the fuel sit in a fuel tank for one week, any longer than that and it is removed and placed back in the fuel drum, as it is hydroscopic. If the fuel is stored properly in an air tight container when not in use for extended periods of time, you will have no issues with water.
We also have no issues with vapor lock but we run a system similar to dry sump oiling, so the main pickup is always submerged and under 5psi.
We run a return-less fuel injection system, the same as in on newer cars, and it is a closed loop sequential system using two Lambda sensors.
The only thing I would be concerned with is rapid pressure and temperature changes, which aircraft experience, this would need some testing.
