I'm almost done with rally now (only Grand Canyon Hard left to beat)... I had been using the 206 Rally Car (excellent), then switched to the Evo VI Rally Car (slightly better than the 206), and now I'm driving the Evo VIII Super Rally Car (way faster than either of the others). The Evo VIII fully modded has a great power band, and handles pretty decently. I won Chamonix Hard by more than 26 seconds over an Evo IV Rally Car. The only track I really have problems with is Grand Canyon. It seems so long, it's like Nurburgring on dirt...
The key to the ice and snow tracks is to keep your drifts very shallow and use alot of partial throttle. Grand Canyon you can open it up a bit, the other dirt tracks it is almost totally full throttle or on the brakes for me...
As for passing, it is very difficult to do it cleanly, but not impossible. You can get away with touching the opponents car if you are not hitting with the front. I've successfully put my car to the inside and "leaned" on my opponent, shoving them outside, without getting a penalty. Ice Arena, Chamonix and Swiss Alps are wide so passing is easier there. Grand Canyon and Cathedral Rocks are very difficlut places to pass, but it can be done. Generally, though, I concentrate on getting a good jump off the start and get the lead right away. Start in 2nd if you have to, and try not to spin the wheels too much.
Don't get discouraged by your opponents, either. I know the first time I came up aganst the Delta S4 on Tahiti Maze, I though there was no way the 206 would be able to take it. Well, I was wrong, because with a little practice, the wider torque curves of the newer rally cars make corner exit speeds much higher than the old Group B cars. Plus it seems that the group B cars are almost
too light for rally, and they have a harder time getting traction unless the road is smooth and straight. That's what makes the Evo VIII Super Rally car so great. It is a bit heavier than the Group B cars, has even more power when modded, and it has decent torque curve, even with the upgraded turbo. For Tahiti Maze, you need the torque to keep the wheels spinning in a higher gear to take those hairpins as fast as possible.