Anton Peterka's Wood-Fueled Yugo.

From the website:

Mr. Anton Peterka along with his team, made his '85 Yugo 45, using wood and coal for fuel. It's not a new technology, 125 years old. The process is based on incomplete combustion of wood: due to lack of air, gases are created: carbon monoxide, the main fuels, hydrogen and methane. That mixture of gases is as flammable as gasoline fumes. To get the car moving, it is necessary to "fill it up with wood".

Link (via Make Blog)

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The burning of wood as long as its natural untreated wood is fine..

The earth has delt with plenty of forrest fires from lightning and its a natural thing.

Its the types of wood, oil treated, pressure treated, ect that causes the dirty burn..
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wood is dirty, when you have to clean out your stove, but I believe it is the most environmentally clean fuel source, other than nuclear and hydrogen. Not like we're ruining our environment anyways. buncha hippies.
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Hi Fennec - according to the article: "Instead of 1 litre of gasoline, 2.5 kg of wood is spent. 20 kg of wood are consumed after 100 km which means that driving "on wood" is up to 10 times cheaper than the conventional driving using gasoline. And that is not the only advantage of this kind of driving - exhaust fumes from wood have a lot less harmful components: the environment is being less polluted."

I don't know if it's true, though since as you say wood is a pretty dirty fuel, as anyone who has a wood pellet stove can attest (even a new pellet stove is 2,500x dirtier than a gas furnace, a href=">reference).
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