I figured I'd update this thread with latest results of a upgraded display card.
The original ATI 9800 was starting to die - lots of screen blit type artifacts and it was getting progressively worse.
Unfortunately, because of the vintage of my computer upgrading it was not very straightforward. It is AGP and the options are limited with it being a Mac and all. At the end of the convoluted oddyssey (don't ask) I ended up with an NVIDIA 7800GS with 256MB DDR3 (Mac EEPROM flashed PC Card).
Now I am able to run at 1680x1050 with everything turned on and it rocks! There are a few places where it bogs briefly (Mosport at the Canada government sign for example) but otherwise I'm really happy.
But, race mode still sucks. Frame rates of ~5 FPS when racing against the XS at Mosport. If I switch res to 1024x640 then my FPS goes up to ~8-9 FPS but it still sucks as there is lag between the keyboard input and what happens on the screen (FPS counter not accurate?).
If I turn off all the eye candy like reflection, anti-aliasing, low texture size, etc., etc. the game is a touch more playable but the FPS counter still hovers at around 5 FPS or so.
Anyway, that is what I've found. I thought I remembered someone mention that the collision code might not be as quick as it could be. That might explain why playing aginst another car put the frame rate in the toilet? FWIW, the other car game that we play ( Redline ::
http://www.ambrosiasw.com/games/redline/ ) is smooth as silk on this new display card; it was on the old card too for that matter.
Oh well, I'm just happy to be able to have a functioning PC at home so that I can get back at making the .car file for the Impreza.