Ok, i'm a noob at the whole set up thing, i know i can get them off helpful peeps in game but i just want to stop my understeer problem. First off it may not even be a problem, it might be the way cars drive in real life and i'm confusing the two so here goes to what i experience.

I'm having to take corners slower than i think i have too because of understeer. I've managed to get used to it but i'm holding up everyone who's behind me at each corner and obviously i dont want to ruin their race but at the same time i'd like to be in the race.
I know naff all about the set-ups of cars but i can't find a guide on setting up a car that isn't an excylopedia that would grant me an Honour at the end of it.
Is my problem a set up problem or is it the fact that i don't drive in real life and i'm coming in to this from a Toca/Arcade point of view?

What type of controller are you using?

If you're used to arcade games, my guess is you're turning the wheel way too much, causing the front wheels to lose tons of grip while overheating them at the same time. Try turning the steering lock down in the setup menu and try to steer less.

yes a wheel as my controller and yes its because of the wheel turning to much.

Not sure where steer lock is but i have wheel turn @ 702 and wheel compensation @ 1.00

Recently changed to that after testing the locking of the wheels yet i still get understeer and locked wheels with the mearest of turns, unless i slow right down far beyond the speed of the corner.

Steering Lock is under Steering in the Garage where all of the other setup options are.

Sounds to me like you have a Driving Force Pro? When you're turning into a turn, the force you feel from the wheel's force feedback will gradually increase. When this increase in force begins to stop, you have reached the limit of grip on the front wheels and may need to back off a little.

Also, if you're trying to brake while turning, that is going to lead to some really bad oversteer, too.

A replay would tell the whole story. To save one in single-player mode, hit ESC and then click replay. This will bring up a text box for you to enter a filename. This will then be stored in the LFS\data\spr directory and you can then post it as an attachment here.

you can very simply adjust the balance of the car with the anti roll bars. more rear bias for oversteer, more front for understeer. Of course, there are likely to be other reasons you lack front end grip, such as camber, tyre pressure, ride height, springs, dampers, final drive, yada yada yada! But anti roll is the easiest effective change.

Quote from [PTG]Chef_uk :

I know naff all about the set-ups of cars but i can't find a guide on setting up a car that isn't an excylopedia that would grant me an Honour at the end of it.

Sorry, but if a job is worth doing, it's worth doing well.