i have never seen that car before, or i dont remember it right now. tcs stops the wheelspin, if u have like 1000hp then use 4-5 tcs, but no more or else its overkill. post the settings for the car so we can have a disscussion.
TCS is probably the best way to keep the tired from lighting up on the 64 GTO. Thats how I kept my '63 Vette from doing the same thing.
Another option is to de-tune the car a bit. 9 times out of 10 in races you won't need the cars total HP in order to win a race.
Another suggeestion is not to mash the throttle all the way down. Hold off of it just a bit and it will help out. Remember the DS2 is pressure sensitive. Its not all or nothing.