The game originally used a standard joystick, so there is no way to have analog controls.
You can use your wheel, but it will react the same as on/off switches in a joystick.
The deadzone should be adjustable in Logitech Profiler.
Most of us just wouldn't include the game because it didn't use a racing wheel to begin with.
EDIT: I should add that some games like 1000 Miglia had the option for joystick, optical wheel, or analog wheel. With these, you may have to change the setting via DIP switches in MAME's in game menu or options in the games service menu.
Here is a spreadsheet I did way back with the types of controls each driving game use:
https://docs.google.com/spreadsheets/d/1pJLy8JgRF7dL1X3CcDyDLKOLSIJs4gYZY4DLI0pmnmE/edit#gid=0It is linked in the driving cab info thread stickied above. If you're new to setting up MAME with driving games, please see the MAME section of that thread.