[jamesm]

Well, a quick google search for 'e85 fuel filter' would suggest this isn't unheard of. 'Paper filter degradation' has been documented. Also problems introduced when the fuel filter isn't changed before using it the first time, clogging of fuel filters, etc.

I'm not saying any of this is correct, just that there's plenty out there to read on the subject, and at least some cars do appear to have issues similar to this. I'd imagine there is a reason the vehicle isn't rated for e85 by Toyota/Subaru, so it makes sense that you may run into something like this.

Edit: so it's pretty apparent after reading a bit that you're pretty much just not supposed to use e85 with paper filters. So, in any case, this is surely a problem to some degree and we need a stainless filter to fix it. If you believe the internet, that is.