First, there is pop-up. The pop-up varies from the near to far field. However, if you stay focused on the racing, the pop-up isn't too noticeable. Next, there are some collision detection problems. An invisible box lies inside your car, and it's not uncommon for objects to penetrate the extreme corners of the car.
Shrubs even go through cars unscathed.
Another issue that may cause some discomfort is the camera. My personal preference for driving games is to use first-person views. In V-Rally, the cars are somewhat twitchy and turn easily. One is situated on the bumper, a second is position just ahead of the front window, and the final is a driver's perspective with gloved hands and a well-rendered dash. I found I had to play the game with one of the third-person views, which actually turned out to be great.