E85 on K-Jet is probably not a great idea. Most everything on k-jet is submerged in fuel. If there are any brass components (I think that's what ethyl alcohol doesn't like), they'll get damaged and you'll end up with a non-running car. With EFI, it's much more simple. Just make sure the hoses, the o-rings, and the injectors are in good shape, and you should be good to go. You may need injectors from a flex-fuel vehicle (like one of the many FFV Taurus or Luminas on the road).

As far as tuning the car, you'll generally need more E85 than gasoline to run properly. With LH 2.4, this should be pretty easy as you can already get reprogrammed chips for this. If you find a chipable LH 2.2 box, you could probably even make E85 work with LH 2.2. Or, you could just go to aftermarket EFI and be done with it.