This is how it looks from my point of view.
Very first race out of 4 that night.
1. Willow Springs GP
I was leading for like 5 laps but
So my Zonda was slower and HOG was on fire, i felt his breath on my back and knew that this is it inevitable happened and he did overtake me. He was fast so slowly starts to disappear from my view, but suddenly he did!

PUFFF just like that. And then something rather strange happened. Evey one else freezes or stop their cars, i was only one who could continue driving.
I did cross the finish line, and then get disconnected.
That was a good race until the connection lost, it was my first time using the Lambo on anything other than the nurburgring and i was impressed with its power and controllability.
Now as for splitting race into two lobbies i will support any decision that you will take. It's really sad to see how someone suddenly get disconnected while he's leading the race.
Hog would absolutely win in Willow Springs the first time we raced there. But that might be connection problems. While in my country it's 11 PM (night racing) i have good Internet speed and no problems for me in with disconnections. But i am aware that video frames issues still is a problem, this could be eliminated during less players racing on the track.
NITROVIOUS idea is OK. But only one question, fastest laps during race mode or Time Attack? Because if we could try to set something like qualifications in time trial then probably it would be easier to make some space between ourselves and then safely try to attack time table without causing crashes and trying to overtake others. Just an idea to think about before next weekend.