I've noticed for a while that my GT3 game no longer displays the 'sparks' produced by several cars when you hit high curbs. It won't even display them for the CPU players.
If u want to see sparks u have to use a high hp powered car. And preferably on a bumpy curse on Seattle, try it on the uphill sharp turn. If that doesnt happen then I dont know whats wrong with ur game. Try the Toyota GT-1 race car, the Nissan LM(?), the Viper any car that practically has a low height.