ethyl alcohol will give you quite a buzz (get you drunk). It can be burned in internal combustion engines but not as effectively as methanol which can kill you if you drink it. ethyl alcohol is usually distilled from organic matter whereas methanol is made in a lab.
Short answer is.....your friend is right methanol is the fuel they use in racing. ethyl alcohol is what is consumed after a winning weekend....but never the night before a race
Omega