Well the key is throttle manipulation...Depending on the power of your car your "drift gear" will be anywhere from 2nd to 4th. If you didn't know, the buttons on the ps2 controller are pressure sensitive so you have variable control on how much throttle you're putting down. some times a lot of countersteering is in order too, everything else is just practice.
Also many people drift many different ways...Some use grippy tyres and a lot of horse power, others use simulation tyres. When you first get into simulation tyres with power over 260hps you'll notice that the back wheels feel as if they're on ice...With practice you can harness that and slide your way around turns with relative ease...
Concerning settings....I base all my drift cars around a generic forumla, if you will...Spring rate and ride height may differ slightly but a lot of times they're left stock. Bound/Rebound I tend to keep around the same numbers, it keeps the car more stable. Ie: 4567 going from front bound to rear rebound or 5667. For LSD I tend to keep my torque and accel settings much higher than my decel, that's just how I like it. Downforce I mess with if it's a high powered race car on sim tyres...Adjusting the downforce can really give much more control to the car. Also, if sim tyres aren't your thing, go for super slicks and adjust the downforce so the front has much more weight than the rear...This'll help get the tail out as well as all low LSD settings. Hope this helps.