I have a lot of experience with this, its the way the game is programmed not the wheel. The way the steering works in double dash is very strange. If you turn around 30 degrees it automatically goes into a skid. I've tried both the wheel and the standard controller settings and the controller setting work better in my opinion. You'll probably have to set the wheel to 180 degrees if that's even possible. You also have to set the deadzone a little high and set the radius so that the wheel reaches just to the edges of the circle if not a bit inside the circle.
Even with the settings as good as I can get them the steering is still not perfect, but at least playable.
Conversely if you set up a wheel with f-zero gx, it works perfectly...