that's what I get when i try to race after selecting the car (in all cars)

Sounds like a server specific InSim app is stopping you from using it because you have to do something to unlock that car on that server. Only ones I know of are the STCC servers and CLC Caribbean Cruise.

!!!!POLICESTOP!!! muuuahahhahahha!
!buy stuff
!drive like a girl

You where on one of those 'real-life' servers
Read the server rulse before driving

Quote from CSU1 :

You where on one of those 'real-life' servers
Read the server rulse before driving

Actually it says he's online at the STCC server in which case you need to start with either an XFG or UF1 (which ever is in the server your in). Bronze unlocks the XRG, Silver (different server) RB4/XRT and Gold FXO.