In practice very few servers have long pauses between races, since most people playing actually want to race and will vote to restart not long after a race has completed.
The way LFS works means that even if there isn't actually a race in progress ['cos it's finished] all the players on it can still get out and drive around the track/make pit stops improve their P.B times etc etc, the only difference being that since there's no race in progress nobody's going to win after a certain number of laps have been completed.
Server admins can force restarts with a command to the server, but you won't always find them present.
As for servers you can play on...well LFS is far less ping dependent than many other games on the market [in fact its netcode is widely admired]
I'd say don't be put off by the fact that a server may be some distance from you but try it and see if you get a smooth game, if you consistently lag out then somebody's gonna let you know sooner or later.
What you really ought to do is visit the Australasian LFS community site
http://www.austraracing.com/
and get registered for their forums, once you see just how active the LFS scene is down under you'll soon be buying the full game and playing online