They demo'ed this with Listerine instead of real alcohol and it worked well. Honestly I'm tempted to buy a Drinkshield.
It isn't measuring BAC very well at all if it is easily confused by someone who has used mouthwash.
EDIT: That's not to say it isn't an awesome project, which it definitely is :)
http://askville.amazon.com/Crest-mouthwash-make-fail-breatha...
We found that the Listerine effect seems to diminish quickly after several minutes.
EDIT: On further research it seems that they put stuff into mouthwash to make it undrinkable, in order to prevent abuse and avoid taxes and regulation on alcohol. That doesn't prevent you from ingesting it however. It's just supposed to make it unpleasant.