Hey there.
GT5 can certainly be intimidating to the uninitiated racer, but once you break the learning curve it's a great game!
My first recommendation would be to definitely do the Licenses. The very early ones are quite basic, and might seem like a chore at first, but I'd imagine they're pretty important if you've not played many driving games before. Stuff such as learning the right driving line into a hairpin turn, for example, is really useful in the long run.
I wouldn't worry too much about tuning your cars at this stage - you can do some very tangible stuff like engine improvements and weight reduction if you like, with those you should immediately have a discernible difference. Some of the more complicated tuning options like fully customizable suspensions, transmissions and LSD can be completely avoided at this stage, but just remember for future use that when you're comfortable with the game they are a very deep and complex way of perfecting your car to the way you want it!
One 'tune' you could definitely use is buying some better tyres for your cars. The softer compounds can feel a bit like Cheat Mode on the earlier tournaments, but it all depends on one's personal skill and their desire for a challenge. Softer tyres let you carry a ton more speed into the corners and brake a lot later. It's up to you - decide whether you want to learn "properly" or whether you just want to win and earn some more credits and EXP.
I wouldn't say using cars you like the aesthetic look of is wrong at all! If you like what you're racing with then it's all good, right? Don't use something that someone says is good but doesn't appeal to you. That will come later, sadly there are times when using something you don't particularly enjoy is necessary. Also - I don't know if you've seen it but every car has Performance Points (PP) and engine power (BHP), if you match your PP and BHP roughly to the PP of the CPU cars in the race, you should get pretty close/exciting racing. A lot of what winning the events is about is what car you bring to the track. As long as you have the right entry requirements, a similar PP and BHP you can win races in a competitive manner. Don't worry about the difference in drive types such as 4WD, FR and FF just yet. There are big differences, yes, but for now I'd concentrate on learning driving lines.
The different aids on offer can also help you - but again it depends on how 'pure' you want your driving experience to be. If you ever plan on racing online, it's probably best to get used to having most of them off, as most online lobbies ban roughly ~80% of the available driving aids. For now, the two I would keep on would be Driving Line (sounds like you've used this), to get you used to the tracks, and also ABS (anti-lock braking system), which prevents your car from locking its' wheels when you're braking - trust me that's a good thing! You can keep Traction Control on - which stops you sliding around when you accelerate out of corners - but eventually you'll want to get rid of it. The rest, unless you feel like you particularly need them, should probably be avoided, they have a tendency to make you slower in the long run since you get used to bad habits. For now keep the transmission on Auto. You can worry about using Manual when you're comfortable with everything else, but Manual is definitely the quicker option and affords you more control.
You should also make a note of your control system. I'm presuming you're using a DS3? In the options, you can change the controls to suit you. Personally I like having accelerate/brake on R2 and L2 respectively. I believe the default uses the Right stick in an up/down configuration. I find that the triggers provide more comfort and more control. Also it might be a good idea to turn the Steering Sensitivity to maximum (or your preference), as it lets you have quicker movements on the Left stick.
I think that's about it for now - if I've confused you or bored you I'm sorry! One last tip - check out GT Planet, there is a huge community on that website and extremely active forums.
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