My habit would be looking and driving, but my mind will be somewhere else. It leaves me open to major mistakes.. Which can happen! And because of this, I just can't seem to finish the Formula 1 races..
Best way of avoiding/minimising that:
1. Play in a room that isn't too brightly lit, but is not totally dark either. Your eyes kinda zone in much more comfortably, and this also helps you concentrate in a more natural, easy way (as opposed to really having to TRY to concentrate, which never really works).
2. Try to minimise disruption and distractions, like people walking through rooms and stuff. This is of course not usually possible but you can try to position yourself so you get fewer VISUAL distractions to deal with, like things moving or visual clutter. Things like that always distract me. Fewer distractions in the outside world = fewer things for your active mind to be pondering just as you meant to brake for a hairpin. Although, of course, you can't really stop your imagination so you just have to do the best you can.
3. Get yourself as comfortable as possible. By this I mean where you don't have to think about moving yourself at all during a race. This includes things like optimising position of seat and screen, so you don't have to position your back or neck even slightly awkwardly, making sure you aren't leaning on one side more than the other and that you are supported in a comfortable-but-alert posture. Also, work out what the most relaxed way of holding the joypad is (if you use one). I just rest my hands on my legs, and when I'm really in the zone it feels like I'm not holding the pad at all.
When I'm really comfortable (ie not letting anything stimulate me into thinking about my physical position or my view of the circuit), i seem to drift into a total driving trance, where I feel completely connected to the car. This is invariably when I produce my fastest lap times!
Of course, that's what works for me....you would probably have different preferences.
Bit of a long winded response but I had 5 minutes to spare before I'm off to play football. Being able to relax and be absorbed into driving without distraction is one of the biggest things that helps me in GT. Not that I'd even get close to being as good as some people on this forum probably are!
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By the time I figure it out, the Ai is sometimes getting past me cuz I've braked in the wrong area!
Peugeot won LMPs. Corvette won GT1 class. Porsche got GT2.
Watching LMPs is awesome, but I do wish they gave lesser classes more camera-time. 
