Since this such hard misconception to break, I'm gonna post all of the thoughts I've cultivated on the issue... Which is actually alot, haha. I think embalming fluid laced PCP, or the idea that PCP itself IS embalming fluid is such an enduring myth for the following reasons:
*dons PCP-rofessor cap*
-Most street PCP is very impure and thus inherently toxic to a certain degree, due to PCC, piperidine, cyclohexanone, and other nasty precursor chems. Look up the toxicity levels of those and other probable PCP contaminants and note the toxicity level is in the MICROgrams. Now consider that a typical dip/sherm stick could contain anywhere between tens and hundreds of MILLIgrams of these nasties. Think befo' ya puff, my fellow shermed out bretherin! If you must indulge insist on getting the purest stuff you can get, and at least try and control your doses-even though it's known that to be nigh impossible with the strong shit. If at all possible research methods on how to clean up your samples if you're willing to do some chemistry. Unfortunately PCC, one of the worst in terms of inducing an aggravated shizophrenic-like state, and is notoriously hard to get out of the final product. Other analogs might be a better choice for this reason alone, but this just isn't an option most of the time. What's in "wet" could be any number of things, most of which not good.
-Even though PCP itself has never been conclusively proven to be neurotoxic, it's effects include cognitive impairment to a certain degree, and definately dissociation from the body to a very large degree. These facts combined with my last point means that heavy users could become used to the toxic effects, perhaps not even noticing the effects on the body until much much later when the damage has already been done. There is of course enough active phencyclidine in most street samples to keep your body numb for days on end. After even a few days of use the compulsion to re-dose can overtake any rational thoughts. Once the extremely strong Pavlovian response to the dopamine rush has been set, pretty much anything resembling the smell and taste of PCP dissolved in a solvent could set off a reaction. This could probably explain why people still claim to get effects off of pure embalming fluid, since it also has a very strong solvent smell despite not containing anything psychoactive... and why would it? It's not meant to be used on anything with a psyche to react to!
-MistaJeff and other's points about the similarity of these experiences to inhalant-type highs has to be taken into account. Many substances that aren't exactly psychoactive can result in altered consciousness when ingested. The explicit effects aren't going to be as long as real PCP which can last upwards of 8-12 hours depending on how much you dose. But like other inhalants it can cause brain damage and a period of feeling "out of it" and poisoned that it at least resembles a dose of street-grade PCP for enough so that the two could be confused. Keep in mind alot of the contexts this stuff is being passed around in are not your ideal drug experimentation circles. More than likely it's going to be street gangs who have a vetted interest in perpetuating this idea, the declining availability of real PCP of any quality also being a factor. In biker gangs and other criminal organizations new recruits are often forced to endure entrance rituals to prove they're willing to do anything for the gang. This could be one way the myth could be passed on, since it furthers the member's macho image to willingly take something so obviously damaging. Being known for breaking into funeral homes and other crimes can also gain attention and notoriety in the community. I certianly wouldn't say any of this to a gang member's face, but thinking from their perspective can at help understand their mindset and the reason for their existence.
-My last point was touched on briefly by another poster, that the experiences induced by dissociatives themselves are quite death-like. This combined with the distinctive smell and strong associations a drug this powerful can cause is something to consider. Once the slang term "embalming fluid" caught on, it's just like a viral meme spreading out and infecting whole sub-cultures. I was vaguely aware of the idea of PCP being used to lace weed, but never considered it a real possibility until it happened to me. I dismissed this whole embalming fluid idea as a wise-tale or classic misunderstanding and over-reaction by uninformed users and hysterical media... Until my friend who worked as a mortuary assistant in LA said someone actually tried to take a bunch of the same chemicals, and got caught in the process. Not until I took seriously these and other first-hand experiences, looked at the actual studies done on formaldehyde abuse, and listened to music like the Leak Bros' album "Waterworld" and other masterworks of underground hip-hop did I take it seriously... Or surriously depending on your choice of slang, ya hurr?
So I think I'll end my epic novel there. *passes the peace pipe to the next poster*