You don't want an oversteery setup with the FZR. If anything you want something that try's to cancel out as much oversteer as possible.
I used mouse and FZR was my car.
I used the mouse buttons to acc and brake while the K/B was used for gear changes. This allows your left hand to go do keyboardy things like F12 and F11 without interferring to much with your driving.
Now. To mouse the FZR you gotta look at a few things. Start with windows. LFS takes it's mouse speed from windows so make sure you have the mouse speed as low as is comfortable and that any acceleration is taken off the mouse. Apparently screen resolution also makes a difference, hi res faster mouse speed. Lo res lower mouse speed.
Then once in LFS itself go to control settings and have a gander at the steer centre reduction. Try and set it as low as you can. This takes off the acceleration on the wheel turn rate. This should reduce any over reaction you get from oversteer and the like which sends you fishtailing into the nearest wall.
I think that about covers the settings side of things. Now to move onto the setup.
Now, don't take any of this as gospel. You have to work somethings out on your own and you need to know how to change your own settings fro different tracks, race distances and cirumstances. But this should give you a rough idea of where to look and what to adjust.
The easy ones first.
Steering. Reduce the degree of wheel turn as much as you can. I generally ran around 20degrees lock to lock, but you can up or lower that to your hearts content. By reducing the steering lock you lower the amount of wheel turn that your mouse is responsible for meaning you can be more accurate and progressive rather than hacking the car around.
Downforce. I ran quite high rear to aid in getting the traction down. But with the new patch you can reduce it quite alot. For AS. NAT I was running between 3 and 4 degrees at the front and around 11 to 14 on the rear depending on my mood. But again, play with these settings untill you find something you are happy with.
Brakes. Just back of the front bias ever so slightly and reduce the overall force untill you can perform a high speed stop with the front tyres just onthe edge of skidding. If you watch yout tyre temp graph if your front tyres are continously running red or bursting then the first thing you need to do is reduce the braking power. It does mean will have to take very careful note of your brake points and you might find pedal users outbraking you as they can brake later. But don't panic. You'll soon be up with them again. Just remember that you are different and that you havee your own way of racing. Don't try and out do them at every corner because you can't.
Speaking of which. Tyres.
Lower pressure, more grip, better braking, higher wear rate, lower top speed.
Higher pressure, less grip, less braking, lower wear rate, higher top speed.
Also if you run front pressure higher than the rear (Particularily the FZR) then you will be able to control the braking much better. If the rear pressure is higher than the front it has a tendancy to put the car on edge during heavy braking. If you are loosing the tail under straightline braking this could be a reason why. You will also notice a handling difference with your pressures. If you run them high you get a much crisper and tighter car. If you run them low then the grip might be higher but the car feels wallowy and not so connected to the tarmac. Again. Play with the settings and find whats best for you.
Whats next. Ah yes. Toe in.
For the FZR get toe in to about 3 or 4 degrees. You can run less if you prefer a looser back end and with the new patch the FZR doesn't punish half as bad as it did if you lost the back end. But with 3 degrees toe in on the rear it really helps you get the power down earlier with the mouse without the rear saying hello to the front. I would stay neutral on the front as I found with the mouse you don't have enough control to get the most from any steering traits that toe in can give you.
What about suspension I hear you say, well I'm am coming to that. Just making sure I havn't forgotten anything else.
Ah yes. Parallel steer. Again, personal preference I think. I used to run pretty high parallel steer prehaps as much as 80-90%. I felt it helped calm the steering down somewhat.
Ok. Suspension.
This is where it get serious. You really are going to have to play with the settings here because everything effects everything else here. But a couple of major pointer would be . . .
Don't run too stiff. You can't control a rigid car with a mouse, bounces you all over the place and you just don't have the control.
Make sure you are not riding the end stops, hit them and you don't have enough control over the car. Make sure your ride height can accomodate the rough patches of the circuit. With the lack of any ground effect ride hieght isn't super critical apart from upsetting your ride. And again. Learn how to adjust as you go. Some track can take lower ride heights and stiffer suspension whilst others you need to run high and soft.
Now with the different damper settings I am going to refer you to the manuals out there. You need to learn how to recognise what a car is doing whilst entering, during and exiting a corner. If you are oversteering in but understeering out. That sortta thing. You need to be able to see whats happening and adjust the dampers to solve the problems. It's all about wieght transfer and it's something you need to learn to get the best from LFS.
And last but by no means least. Anti Roll.
I don't know whether this was just me or whether it's the FZR but I often found I got best result by running the rear anti roll considerable lower than the front. As much as 50 points difference on AS NAT. I couldn't explain why I find that worked. But it did so try some experimentation.
But at the end of the day. Despite any adice you might recieve the best way you are going to learn is by playing witht he settings and finding things out for yourself.
Happy racing.