You don't need WMI for what you problem is. It sounds like your turbo is making the air waaaaay hotter than it should. You should first investigate what the hot side air temp is under load.
WMI is a bandaid in this situation. You'd be better off finding out what is actually wrong and dealing with it. That might mean a different tuner, because this guy's clearly not able to punch through the evidence to the source.
And, to answer your specific questions.....yes, demin water is required because tap water has salts in it that dry and deposit when it evaporates. If you think about the process you are using the water for, I think it will become obvious why that is important. And methanol is methanol. Any industrial grade near pure methanol will be fine, so long as the balance of the mix is not something bad, like formaldehyde. If it is 95% meth and balance water......