From the MCI packet, it is calling three different bits of data. The first is Node, the second and third are the X and Y.
Nodes are boxes laid out on the track that tell information about the track. For example, it gives information about direction, ensuring that the client is going the correct direction, and position. Node numbers get higher the further into the lap you get, this allows the LFS engine a very quick way to keep track of who is in front while on the same lap. As a higher number means they are further into the lap, it also means that the highest number has compleated that lap the most. In the case of a person being on the lead lap, and then having the highest node number, that person is in first. It's actually a very simple sorting algorithm to implement.
Now the second and third items that it takes from the MCI packets are also pretty interesting in that it provides information as to physically where they are in the world. X & Y start from the center of the whole map, with the X axis laying west (negative) to east (positive), and the Y axis providing north (positive) and south (negative) data on any object as it relates to the center of the map. But that's not all that is interesting about the X and Y information as it's format is not as one would expect. A value of 65536 (X), 65536 (Y) is saying that the object is 1 meter east (X) and 1 meter north (Y) of the center. As LFS is a native 32 bit game, and the base unit of measurement is a meter but that meter takes up 16 bits all by it's self, and the fact that we can have both positive and negative values we can assume that a 32 bit signed integer is provides the boundary of the track's world is 32,767 meters and -32,767 meters giving us a total area of about 40.7221825 square miles, or 65.536 square kilometers (I know, you did not see that one coming did ya!). Simply put ... The tracks could be HUGE!
Hope that helps with understanding what you're looking at. (I guess I should / someone should add this information to the LFSManual / LFS Wiki.