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Several people suggested I try Guar gum instead of Xanthan gum, but that
guar gum might act like a laxative for some people.  Others shared
information on their own experiences with methylcellulose.
I am including some of the more detailed responses, with names removed.
It appears that methylcellulose is a tricky ingredient to use, for
various reasons outlined below.  But can be used successfully
if blended very well with the dry ingredients. It also has the
benefit of replacing the need for eggs in gf bread recipes.
Here are excerpts from the responses I received:
--
I have used methylcellulose in bread but not in cakes. I was not happy
with the texture of my bread and that is why I started using it. I had
to cut way back on the liquid that I used. The batter is of a less
sticky consistency. I use the same amount as for xanthum gum.
  I have never tried it for cakes.
I have heard that there are different kinds of methylcellulose. I buy
mine in a local Edmonton store, but it comes from B.C. and I have no
idea what kind it is.
--
I use a bread recipe that uses 2 tablespoons plus one tsp. of
methylcellulose and one tsp. of xanthan gum (and no eggs).  It uses only
three cups of flours and produces two loaves of a very light bread. I've
never tried leaving out the xanthan gum. I know this is not an answer to
your question, but don't see methylcellulose mentioned  on this list often.
--
Methylcellulose works to produce bread from a very, very sticky, stiff
mixture; it is not a substitute for xanthan gum in any recipe. If you
react to xanthan gum you might try Guar gum; it is more of a substitute.
--
I would be interested in the answers to this question. I have an allergy
to corn and cannot use Xanthan Gum and must find a replacement.  Some Guar
Gum is OK, but too much causes cramps so I use very little.
--
Hi. I am wondering if you have first checked with the company that made
the xanthum gum to see if it is GF.  That could possibly be your problem.
I don't know what else you could use if you are truly allergic to the gum.
--
Methylcellulose is not a good substitute for xanthan gum.  Guar gum or
Potato Flour will work better.
Methylcellulose is touchy. Viscosity varies widely, it absorbs and
releases humidity into the atmosphere rapidly, it absorbs more water
with  more mixing, it is more soluble in cold water than in warm water
(opposite of most ingredients), unlike xanthan gum it traps CO2 emitted
by yeast and/or chemical leaveners.
It is also a wonderful ingredient and much more can be done with it than
with xanthan or guar gum.  But it is touchy.
--
I have purchased methylcellulose gum from EnerG; it comes with a recipe
for rice bread. The first time I followed the recipe the bread fell apart
when I tried to cut it. I called them and had a good talk with one of the
founders. I made the bread a second time and it was fine; it is necessary
to mix the ingredients very, very thoroughly in a high-powered mixer
(I use a heavy-duty Kitchenade)and produce a small loaf. The chief
advantage of the process is that methylcellulose bread does not use
eggs; most of the xanthan gum breads--all of them that I make--have lots
of eggs in them. My mother was allergic to eggs; she bought the EnerG
bread without eggs and did just fine.
--
Before you give up on xanthan gum, check the supplier. I was getting sick
every day and I was being very careful about what I ate. When I was out of
town, I ran out of the Ener-G gum I normally used and bought Red Mill.
For four months I tried to figure out my problem, and then someone on the
list mentioned that Red Mill was sometimes contaminated.  I threw out the
bread I had on hand, threw out the two packages of Red Mill gum, and the
problem cleared up.  It never occurred to me that the gum could be
contaminated so now I suspect everything.  For me, Ener-G xanthan gum has
always been safe. I have no interest in the company, just my own wellbeing.
--
For cakes containing eggs, try separating the eggs, whipping the whites
until they form peaks.  Combine the yolks with all of the rest of the
ingredients, and fold into the whites as a final step.
--
Thank you to everyone for your tips and ideas. I'll be experimenting
further with the methylcellulose and let you know what I come up with.

Teresa
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Ottawa, Ontario, Canada