Yeah, the sounds are more or less real. I heard that they just modified some of the sounds for cars they couldnt get to for recording. My favorite part is that the sounds inside and outside the car are accurate. Lots of people bitch about the sounds the engines make, but that probabally means they havent been inside an F1 car to hear them. Not that I have. One problem is that changing your exhaust dosent alter your sound. That kinda sucks.
Can the volume for different things be set in the game? I cant hear the music at all, and my engine is FAR too quiet while the bumps and other cars are screamingly loud.