If the picture is distorted, then you just stretch the image with the calibration settings until it isn't. Running at 1280x1024 without little black bars down the side will be distorted.
1280x1024 on my desktop, which is the computer I use for most of my LFS racing being where I set up my wheel. However, I run 1440x900 on my laptop (more powerful than my tower) and do use LFS from time to time, check races, skins, kb drive, etc.