Better known today as the developer of Skyrim and Fallout, Bethesda once had a well-respected racing game franchise and were deep into development of a licensed Skip Barber Racing title that never released.
Asobo, known today as the Microsoft Flight Simulator developer, created groundbreaking technology for large scale maps that was intended to be used in a high quality rally raid title. It was never released and ended up as FUEL, a post-apocalyptic open-world racing game. What happened?
Run 3DConfig in Win98/Me compatibility mode to create a config.ini, then run the F1C exe in Win98/Me compatibility so it can use that config.ini. You do not need to edit the INI file at all using this method, just use the config tool to set resolution, etc.
I do recommend setting anisotropic filtering to 16x (if your system can run it) and antialiasing to 8x (again, if your system can) in a video card profile, not in the sim, as it will greatly improve the visuals in the low resolutions available.