Hey!
I'm gonna try to awnser all of your questions, if I'm wrong, someone will correct me (I hope).
1. You can't really drift with FWD so forget about that (or, if you want many people calling you stupid, it's up to you
), it's just sliding a.k.a. ass draggin..
RWD is the best, AWD can be good (there's some people who drift real good in both RB4 and FXR but I like RWD much more).
2. You can find my setup and a replay
here (if you don't know how to watch a replay; put it in LFS\data\spr, start LFS, replays in the first menu and there it should be if you placed it in the right dir).
Then there's a good site with lots of setups used to make world records with (and some drifting setups)
http://setupfield.teaminferno.hu
3. Mouse is much better than kb and a wheel (well imo) is much better than mouse (depends on which wheel to but a decent like MOMO or DFP). I drove with mouse and I know that many do (even some people on keyboard, I've driven with that too).. Well, it's, can't find a good word here but "enough" if you know how I mean..
I had the throttle and brake like you, and then shift up on a, down on z, clutch on x and handbrake on space. Worked fine for me
You would (almost 100% sure you would) have more fun with a wheel though..
4. It's much better to learn to drive with manual gears. Then you have more control. With auto, you never know if it's going to shift in the middle of the turn and ruin your drift (havn't even tried auto in LFS but it shifts by itself and that isn't good.. :P)
You can let it clutch automaticly though, that's just for hardcore / people with a clutch on their pedals.. It's good to have clutch binded, that's a way to start a drift..
5. Chech my replay (question #2) and go in LFS options -> Display -> Show pedals -> Yes. Then you see, down to the right on your screen what I'm doing with my throttle, brake, clutch and handbrake..
You only use handbrake if it's needed, for example you're coming to a turn, and you don't have enough speed to slide through it, then you can handbrake and slide forward (losing speed but keeps the drift) and make the turn.
You shouldn't brake in the middle of the corner either..
6. If it's a right turn, then you go from the left to the innercurve (right of course) and out to the left again (out on straight or something). Check my replay for that too..
7. Check my replay.
8. Drifting is balance. You keep the drift with steering, throttle, brake and handbrake. You do want to at the highest possible speed with biggest angle. That's what you're trying to do. In the beginning, start going slow into corners (just drive normally) and just throttle full until the car has started sliding, then you can release throttle and apply it again so you keep the drift. Well, I'm not good at explaining but if you check my replay really close you will see exactly what I'm doing and after a while, you'll understand too
9. How much you should steer, well, all depends on what type of corner, speed, angle and so.. That's hard to awnser. You want to keep your car sliding, if you countersteer too much, you'll end up catching your slide (depends that too but in theory) and if you countersteer too little, you'll end up spining.. So, it's all about finding that balance..
10. Just ask and I (and more I hope) will awnser as good as I can
Hope it helped!
If I'm not right about anything, please say so he gets a correct awnser.. (I'm sure I said something wrong, I'm tired as hell)
By the way, you could go online, on a driftingserver and just ask people if they can help you. Just be nice and I'm sure they'll be nice to you too..
And, most important, don't give up. It's not easy (as many think) but once you start to know it, it's much fun
Good luck!
Edit: This must be the biggest post I've ever written.. :P
My english isn't perfect but I think you'll understand