First let me say that LFS is an aswome game. So many variables.

I do have a question about the in car race display. Just what is that thing in the lower left corner that looks like a graphic equalizer?

Think of it as a 'netgraph'. It basically shows the network data while being online. Most of the bars are all the people connected to the server and how active their connection is (or how well they are recieving packets). Usually some of them can go solid and not move up and down, and that person (either you are someone else) would be lagging. It usually tops off with a red tip if it gets really long.