I just bought the Microsoft wheel.
It was a pain to carry all the way home because the package is really big and not exactly light.
I' ve opened it and looked at the parts but I haven' t played any games yet.
It includes a special version PGR3 just as Majik said.
It was a challenge to open the packaging without damaging the box but I eventually did it.
The parts look and feel amazing. The rubber on the wheel s so nice and it' s got this amazing feeling of quality. It feels like I' ve bought a $500 wheel for a nickel. Seriously.
Now I' m off to try it out in PGR3

Nice! Let us know how it handles, as I may consider getting one when Forza 2 comes out. The whole lap steering thing has always seemed odd to me, having the thing clamp your legs down and move about all over.

Seems the best solution to driving in front of the telly though short of buying one of those specially made clamp stands.

Ok, I just spent some time with PGR3.
I haven' t had a wheel myself before or a car so I can' t really compare the wheel with much.
All I can say is that I' ve never had so much fun playing a racing game .
At first I just hit the walls all the time but after playing the game for a while I actually learned to drive pretty good. Which is quite impressive because I suck at racing games. When I say suck I really mean suck.

You can have the wheel in your lap but that felt weird. But the good thing is that they' ve shaped he wheel' s bottom so that it feels comfortable to have it there.
I play my 360 on my PC screen so I just stuck it on my computer desk with the detachable clamp.

The force feedback and rumble felt really good, but as I said I can' t exactly compare with anything.
I played the TDU demo but it seems the force feedback didn' t work in that and it wasn' t near as fun as when I played with force feedback.

As a non-racing game enthusiast, non-driver, racing-game-loser all I can say is that the wheel definitely enhanced the racing experience, made it much more fun and I really doubt any other wheels in this price cathegory can compare.

But why listen to me? Listen to these guys who actually know their stuff:
http://gear.ign.com/articles/747/747438p1.aspx
I would say their review is quite accurate.

I' m wondering whether with Vista, they' ll allow the MS wheel to work with the PC as they look like they will with the wireless pads...

Glad you' re having fun with it though. I love playing PC racing sims with my DFP, but then I' m a bit of a fan(atic)!

So, does all 360 racing games support force feedback and that stuff?

No, but there should be more on the horizon. I think PGR is the only one so far with true force feedback (as opposed to just rumble). The next major one is Forza. Hopefully Sega Rally Revo will. Haven' t heard anything about that one in a while.