here's probably all the details you have to know:
odd chain fatty acids broken down to propionyl CoA --> methylmalonyl CoA --> succinyl CoA (enzyme for this reaction is methymalony CoA mutase - which needs B12)
so you get a buildup of methylmalonyl CoA and propionyl CoA. goljan's book said propionyl CoA replaces acetyl CoA in neuronal membranes resulting in demyelination. i think i also read somewhere that methylmalony coa is toxic to schwann cells.
also of course, don't forget folate isn't involved in this so the megaloblastic anemia from folate deficiency has no neurologic problems.