Ethanol is a huge crock, it actually takes more energy to produce than it provides, thank the corn lobbyists, they do good work it would appear. Ethanol has less energy content than gasoline, so by adding 10% ethanol to our fuel, you get less energy potential in the same volume of fuel. And ethanol is corrosive to many rubber components in the fuel system.
The scangaugeII will give accurate calculations if the data it is basing those calculations off is accurate. If the larger tires causes the odometer to read low (you cover more ground with less tire rotations than stock), then the miles you will show per tank on the trip meter will also be low = mpg will read low.
I run those same size tires, and my speedometer is actually MORE accurate than with the stock size tires according to GPS, but the mpg will show a drop because the odometer was OVER reporting before the tire change. My current MPG figures are more accurate than before, but read slightly lower as a result.