When the Bible talks about wine does it mean alcoholic wine?

In discussions I have had in the past over the acceptability of a Christian drinking alcohol I have heard that some 'dry' believers say that the wine in the Bible was not wine as we know it commonly today. It was actually non-alcoholic grape juice. I personally believe that the wine of Jesus' day is the wine that we know. Is there any Biblical/historical evidence to the contrary, that the wine of the past was non-fermented juice?