Well, I hope I know what you're talking about.
I've had this wheel until a week ago or so. Worked just fine for it's money.
Here's a few tips on setting up the wheel properly:
In Logitech Profiler, at Force Feedback settings try to set the following values:
-Overall Effects Strength: 100
-Spring Effect Strength: 0
-Damper Effect Strength: 0
The last 2 settings are optional for most arcade games. LFS is a sim and it generates those movements by default.
Also inside LFS, try to set the wheel compensation at 1, this way you'll have much more accuracy on the first 3/4 of the wheel turn.
Your problem could also be caused by lag, so make sure you've got a decent FPS value
Oh, and also, evrytime you enter LFS try to spin the wheel from one end to another, as well as pushing the pedals to the end a few times. This calibrates the wheel inside LFS