Updated May 27, 2007.

Disclaimer
Remember this is a racing simulator therefore it will not include such things as; Nitrous(drag strip only), Pinks, or illegal street racing.
 
 Forza Motorsport 2 (Xbox 360 exclusive)  
Rating: Not Yet Rated      
Developer: Turn 10
Publisher: Microsoft Game Studios
 
Forza Motorsport 2 is the sequel to Microsoft Game Studios awards winning Forza Motorsport for the original Xbox, with fully customizable setups.
 
With authentic simulation physics, bone-jarring damage, photo-realistic graphics, and licensed tuning and customization options, the franchise improves on the unprecedented features gamers enjoyed in its debut installment.
 
Specs
Players: 1-4   System Link   Online Multiplay (8 players)
Spectator Mode  Online Leaderboards  Content Downloads
HDTV: 480p, 720p, 1080i In-Game Dolby Digital, Steering Wheel (compatible)
 
Features
 
·        Collect, upgrade and tune you cars to the exact specifications you desire. From sport compacts to performance-built race cars, collect more than 300 cars from 50 of the worlds leading manufacturers such as Ferrari, Porsche, General Motors, Lamborghini, Nissan, Volkswagen. Continue to your garage and install alternative engines, suspension kits, bolt-on superchargers, brakes, rims, racing slicks and more. Dial in your gear ratio’s, advanced suspension setting, and tire pressure. All this allows you to own the competition, with the cars you customize and make your own.
 
·        Uncomprising physics simulation will further the experience. Top automotive engineers, professional race car drivers and programmers teamed up and have thus created the most complete racing experience available. Cars include the wear and tear from the previous Forza Motorsport, which affects yours car performance in the long run, as well as advanced tire and suspension models which respond to heat and pressure changes along with weight transfer and aerodynamic load.
 
·        From now on you’ll be lapping the competition at 60 fps with 4x full screen anti-aliasing, motion blur, and high-dynamic-range lighting in breathtaking 720p high definition glory. All made possible to the power of the Xbox 360. Being able to further the experience is now possible for the extra cost of the official Xbox 360 Wireless  Racing Wheel.
 
·        Dominate the competition on tracks from all edges of the globe. From the famously challenging Nürburgring Nordschleife track to the spectacularly lined streets of Rio de Janeiro, race on meticulously designed tracks with the incredible sense of realism and speed that come with Forza 2.
 
·        With a vibrant online community, take you you personalized car onto Xbox Live for some intense online wheel-to-wheel racing. Earn in-game credits and complete single player career objectives while racing over Xbox Live. Much like Project Gotham Racing 3, you’ll also be able to watch the best racers as well as your friends from around the world competing on Forza Motorsport TV.
 
·        Create and share your visual and performance masterpiece with the world. Express your inner artist in the paint and upgrade shops with near-endless visual performance. Customize the shape of your car by combining licensed rims, performance parts and aftermarket body kits. Further enhance the appeal of your ride with unique paint a scheme using millions of paint and decal options. Also take in-game pictures of your creation with the Forza Motorsport 2 photo mode.

Demo Information:  Demo & A/C Car Listings

Auction House in Forza Motorsport 2:

Auctioning Explained 
Car Auctions site on Forza Motorsport 2

NOTE Forza Motorsport 2 announcement dates: