Computing with highly mixed states
  We consider quantum computing in the k-qubit model where the starting state of a quantum computer consists of k qubits in a pure state and n-k qubits in a maximally mixed state. We ask the following question: is there a general method for simulating an arbitrary m-qubit pure state quantum computation by a quantum computation in the k-qubit model? We show that, under certain constraints, this is impossible, unless m=O(k+ log n). 
Andris Ambainis, Leonard J. Schulman, Umesh Vazirani