when using ethanol blend in small engines, what problems will this cause in the future to equipment?

Probably none, but depending on a whole bunch of factors not mentioned, it just might.

Run lean and burn valves(Safety valves) and pistons.
Detonate.
Corrode metal and plastic components it contacts.  

I have used ethanol on one Briggs-Stratten engine and methanol on several 100, 250 and, 360 cc motorcycle engines. ALL required major mods to fuel flow and carb jetting. On the Briggs I used a remote fuel tank and larger fuel hose with a 7/8" Dellorto and adjustable main jet. No problems at all.

Methanol required flushing the fuel system, but ethanol did not give any problems between uses.

Almost forgot, I did boost the CR and advance the ign. timing on all.

"Several states that are required to use reformulated gasoline containing oxygenates (to combat ozone pollution) have banned one oxygenate, MTBE, due to ground water contamination concerns. The only practical remaining oxygenate is ethanol."

MTBE: Methyl tertiary butyl ethane is a gasoline additive which increases octane rating.

I think that MTBE is banned pretty much nationwide now. So the next cheapest alternative is ethanol, which works as both an oxygenate and octane booster. Unfortunately it takes more energy to make ethanol than you get from the fuel.....but that is for another post.

Most frequent problem I've run across is on carburated equipment that is not used on a regular basis. Fuel inlet controll needle that uses viton or whatever trademark name is assigned to the rubber like material used at the tip, is compromised after periods of storage. Also attacks diaphram of mechanical fuel pumps. Replacement of damaged parts, disconnect fuel supply and run the engine till it consums fuel remaining in bowl proir to periods of innactivity, fabricate needle replacement needle out of nickel, are the solutions I've tried to overcome the problem. Also the hydroscopic nature of the alcohul cases rusting in steel material fuel tanks. Where I live (northeast US) all pump gasoline is E10.

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