So, yeah I'm sure its probably still better than tobacco smoke but, here is what wiki says
Exposure to mists may cause eye irritation, as well as upper respiratory tract irritation. Inhaation of the propylene glycol vapors appears to present no significant hazard in ordinary applications. However, limited human experience indicates that inhalation of propylene glycol mists could be irritating to some individuals. Therefore inhalation exposure to mists of these materials should be avoided. Some research has suggested that propylene glycol not be used in applications where inhalation exposure or human eye contact with the spray mists of these materials is likely, such as fogs for theatrical productions or antifreeze solutions for emergency eye wash stations.[
Additionally, some electronic cigarette users who inhale propylene glycol vapor may experience dryness of the throat or shortness of breath . As an alternative, some suppliers will put Vegetable Glycerin in the "e-liquid" for those who are allergic (or have bad reactions) to propylene glycol.
Important correction, november 2010: Recent findings in a Swedish study strongly suggests a connection between air-concentrations of propylenglycol in houses and development of asthma and allergic reactions as rhinitis, in children. (Choi, Schmidbauer m.fl. ("010): Common Household Chemicals and the Allergy Risks in Pre-School Age Children. PLoS ONE 5(10): e13423, doi:10.1371/journal.pone.0013423.)

Exposure to mists may cause eye irritation, as well as upper respiratory tract irritation. Inhaation of the propylene glycol vapors appears to present no significant hazard in ordinary applications. However, limited human experience indicates that inhalation of propylene glycol mists could be irritating to some individuals. Therefore inhalation exposure to mists of these materials should be avoided. Some research has suggested that propylene glycol not be used in applications where inhalation exposure or human eye contact with the spray mists of these materials is likely, such as fogs for theatrical productions or antifreeze solutions for emergency eye wash stations.[
Additionally, some electronic cigarette users who inhale propylene glycol vapor may experience dryness of the throat or shortness of breath . As an alternative, some suppliers will put Vegetable Glycerin in the "e-liquid" for those who are allergic (or have bad reactions) to propylene glycol.
Important correction, november 2010: Recent findings in a Swedish study strongly suggests a connection between air-concentrations of propylenglycol in houses and development of asthma and allergic reactions as rhinitis, in children. (Choi, Schmidbauer m.fl. ("010): Common Household Chemicals and the Allergy Risks in Pre-School Age Children. PLoS ONE 5(10): e13423, doi:10.1371/journal.pone.0013423.)
