Not sure if this has been mentioned before or what. I started getting tired of reading people yelling at one another.
Anyways, What could be done is exactly what the people at
http://www.steambans.com did. Basically you can report a cheater and after review, they get added to a list. People on the list don't get to play on servers running the steambans mod. Where LFS doesn't nearly have the same amount of players as the cs/dod/etc, we could create a LFS:AC team (ac standing for anti-cheat). Simply anyone caught cheating on S2 servers, gets their account banned. Team could consist of trusted community members to take the load off the developers. And since you can pretty much instantly tell the difference between a cheater and a normal racer, I don't think it would be a very timely process. Only thing that would worry me is about the demo servers. The dev's would have to make it so you have to register before you can play on demo servers. And they would have to add some sort of anti-multiple account creation system aswell. Plus we could even use it to take care of idi and all the other wreckers out there.
But either way, that security loop should be dealt with first.