Installed this today (on Windows 7) and thought I'd share some pointers.
Run the setup.exe using compatibility mode for Windows 95.
The game will need to add a registry entry for a joystick.
Let it if you want to use analog controls.
After launching the game, press F3 to make the menu bar show up at the top.
There you can adjust the video settings and map the controls.
I had a horrible time mapping the pedals. It only seems to retain the settings if changes are made while on the initial "press enter" screen.
Changes made while in a race were disregarded. I ended up having Logitech Profiler report combined pedals and mapping the accelerator to Axis 2-, Brake to Axis 2+. The accelerator seems to get screwed up every time you open the tab to map controls.
There are No-CD cracks out there, but the great background music will be missing if the CD is not present.
The best way to handle it is to have it mounted on a virtual drive. Also, it must be in .bin and .cue format. Something about not being able to play isos like real CDs IIRC. (EDIT: I might be confusing this with the game "Screamer" which has to be run in DOSBOX, which might have required the tracks to be in .bin & .cue. Will updated when it's set up on my new PC)
There is a Direct3D patch update for the game. Haven't installed it this time yet, but made a nice difference IIRC.
So is it worth all the hassle? I still haven't played it enough to know.
It does include an Oceanside track not available on any other port.