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Mummelmann said:
I hardly think that Forza 2 damage physics are realistic... The feel of the cars themselves is good enough, but a lot of physics does not equal realistic physics (see Crysis for clues...).
I'm a car enthusiast, more so than a gamer actually, so I happen to know a lot about cars and I can tell you that there are currently no games that are realistic in respect to damage.
It takes so little to destroy a car or make a minor malfunction occur that will have a massive impact on its driveability.
They have made a decent attempt in Forza 2, but it's far from realistic.

Damage modelling is *extremely* difficult to do well. Forza is clearly generous -- you can hit a wall at 30mph without completely totaling your car, because that would become more frustrating than fun. However, they do a convincing job of actually modelling the damage on the body of the car and they do a good job of damage affecting aspects of your car's functionality.  The reason damage is more fun than frustrating is because it affects how you drive your car without completely destroying you for making minor very mistakes.

The physics, however, are much, much better in Forza 2 than any GT game I've ever played. It's cohesive, and it's the first time I've played a racing sim and felt like I was actually approximating racing.

Hopefully GT5 will change things (maybe it can even retake the crown for a short period), but right now Forza 2 is the best racing sim available. It's not even close.