BoxOfSnoo: I think that's about my best time too. Maybe more. Average is still about 3:00 :( I've completely given up on this contest, and I may just shelve the game itself. It's really not fun with my skill level, and there's apparently no rewarding way to improve your skill level with this game.
I tried it with my wheel (Intec wireless PS2/PS3 wheel on Win7 yay!) and it didn't help. Works great with TOCA 3 though. I enjoy TOCA 3 though so I'll stick with that.
The way to improve is practice. The first 10 or 15 times i tried this stage, my times were also way up there in the 3 minutes plus, and at the end of the stage my car was a freaking wreck.
What i did was i gave up on going fast and went 4 or 5 of times really slow to get a better feel of trajectories, breaking points, etc, and then i've started to go a little faster every time.
If you have a pad, try that instead of the wheel.
You can also try changing camera view. I can't really get a feel of the track unless i'm seeing the whole car, but others do best with the bumper cam or the dashboard cam.
If you stick with it for a while, i'm sure you'll start seeing improvements.