Just wanna add to this:
AWD = understeer like a $#&^, and RR is just messed up. now [/discussion]
AWD does no longer equal massive understeer. manageable understeer is more like it, and AWD also brings you to an area closer to neutral handling. infact, a 50/50 weight balance MR AWD car would have extremely neutral handling with a good suspension setup. the problem, is making a 50/50 WB MR AWD car (toooo many acronyms!).
RR is actually one of the better ways to create a solid sports car. look at a Porsche. With the high amount of out-of-corner traction capable, you can create a car which rips out of corners, if you can fit a good solid engine in. Also, once the suspension is properly done (with Porsche, this started with their 5 link rear) you can create a responsive turn in attribute because the front wheels have less weight over them, meanign they will respond to inputs quicker. Oversteer is a problem, but rather than correcting it with braking as in major understeerig problems, you can correct it with steering and throttle variations if the oversteer is of a more gradual kind.
FR produces throttle on oversteer mid corner because the weight isn't fully transferred over to the back end. some of it is transferred to the outside cornering edge because of centrifugal (centripetal?) force. this makes the inside back wheel EXTREMELY light on traction compared to the outside driving wheels, inducing oversteer. Hence, why FR drift cars are so common. the back wheels break loose so easily.
FF compromises traction at all times. 100% of the tire's traction is all that is capable at any time to avoid wheelspin or lockup. unfortunately, in an FF car, that traction is always split between lateral, and braking or accelerating. since the front does most of the braking, this compromise is REALLY felt in the corners, should you need to brake and turn, or accelerate and turn, since the power is being put through the font wheels, and the fronts are also trying to turn. basically, if you need to turn an FF car, the best way to do it is under zero throttle and zero braking. this makes powering out of corners difficult.
MR is the best way to design a neutral sports car in general. it doesn't have the weight of AWD or 4wd, has the weight centered more on the centre of the car, and still keeps the rearward weight transfer of an FR car, whilst not having the traction compromise of an FF car.
If any of that is wrong, please correct me. but I think it's all pretty correct.