Transformer fluid was merely an example. The idea is to find fluids like it, which present characteristics suitable to our application. Here are some comments I've found relating to Linseed oil, for example:
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Fire departments treat the wood handles of hand tools that have metal implements (axes, plaster hooks etc.) on them with Linseed oil as it does not create static electricity, unlike synthetic wood finishes like varnishes.
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Eliminating static electricity, means it's also likely an insulator. At the very least, spilling it shouldn't short anything out.
The thing is to use an oil which has a melting point close to that of Ethanol (within 50* or so of it). One of the substances no one has probably ever considered, is Turpentine. It has a melting point of approximately -50*C. That means, you'll likely never reach a temperature where it freezes. When mixed with Ethanol, the viscosty can be lowered, as well as it's freezing point.
The thing to consider when using any flammable substances, is the addition of a flame retardant. Since water mixes freely with Ethanol, part of the problem might be easily eliminated. There's always the option of synthetic oils as well. Many of them are nonflammable, and likely mix well with Ethanol also.
Just some hints of my direction.
Shingoshi
2007.Dec.09 Sun, 21:38 --800 (PST)