PCCD I race on the demo servers often, as I like the XFG. I don't have much time I can devote to LFS so I pretty much stick to one car. Unfortunately the XFG is not popular on S2 servers(#1), so I normally have a look in S2 servers for an XFG combo but if I find none then I goto the demo.
Demo is bad overall for finding a good race and fair drivers. Having said that 80% of the experiences I have on demo are ok and 20% or more are very good. I rarely get banned, I only remember 1 or 2 times in the last year. The things I do when going onto a demo server are:
1. Get to know the good drivers and look out for them. If you recognise a good driver from before, chances are it will be an ok server as he would have left already if not
2. Watch all the drivers on the server for a lap or two before joining to see if the majority are at a similar level to yourself (within +/- 1 sec)
3. Preferably find a server with an active admin present. Can be hard to find at times but if you look around abit you can find them. They are often full so you may need to try several times to get into a good server.
4. If the server your in begins to turn to shit, leave and repeat the above
I will not name servers as admins are not always present, and the times I get online will probably be different to you. At the times I get online 1 or 2 in 10 maybe admined.
#1 I have noticed that the XFG is being raced a bit more often on the S2 servers in the last few weeks so that is encouraging