I was racing with XFG at Westhill and hit some car that was lagging badly across the track. (One moment it was bouncing around on the grass, then jumped across the track and appeared directly in front of me, but that was just normal lag)
There was little/no damage and I just drove on while the lagging car got flipped over my windshield.

Now I watched the replay and it seems that in replay-mode LFS thinks the front right suspension was destroyed. This causes strange wobbling of the car in the replay, as if the simulation wants to make the car spin of track but is then corrected by the position informations from the replay data every 0,5 seconds or so.

The damage gauge for front right shows "totaled" for a few seconds after the crash. Then it displays "little damage."
http://www.abload.de/img/damagebark8x0.jpg

But the forces for front right tyre look still like a totally broken suspension:
http://www.abload.de/image.php?img=forceviewkmz2.jpg

Yet the car did drive normal when playing, I would not have been able to drive that fast (:really with broken suspension.
It is only in the replay, that the damage is there: Not in F10 view but in Forceview and in the way the car moves.

The attached replay is zipped because it was > 2 MB
My name in the replay is Gutholz and the crash happens at ~ 50 seconds into the first lap, near the bridge.