I just started running e85 this year, no issues with the oil at all (Rotella 15-40). Building enough heat in the motor can be tough since it runs so cool on e85, but just be sure to get it up to temp and the water will vaporize (no more "milk"). I don't have any issue because I have been driving my car back and forth to the track...that gives it plenty of time to get warm.

67 Barracuda street car, 408, e85, 1.38 60', 6.44 @105.9 in the 1/8 mile, 10.19 @130.5 in the 1/4...so far....