Just bought and installed Toca 3.
My problem is when I try to run the game, the screen constantly flashes/strobes going back and forth from full-screen to, very temporarily, windowed mode--roughly once every second for about 1/10 of a sec in windowed mode.
FWIW, in the hardware setup menu, I never see the spinning cube, I have to fake it and tell the program "yes" when testing the 60Hz setting to get it to run.
Don't know if this matters, but I'm running dual monitors, but only game on the "primary" display. Every other game I own (hundreds) works fine, from Crysis to Fallout 3 to iRacing--no problems. I've tried running it in XPsp2 compatibility mode, same problem.
My system is an i7 920, GTX 295+ (latest WHQL drivers,) 9GB RAM, 3TB of HD space, 1920x1200 monitor, and 64-bit Vista.

Thanks Arkose, I think I figured it out.
It'll work with both displays enabled, but I can't have ANYTHING ( open windows/browser, programs, etc) visible in the secondary display. That seems to cause this game to constantly drop in and out of full-screen mode.
I'll credit you with the solution as that made me think to try this.