Firstly, *IN-GAME*, go to Options, Graphics, Advanced. Top left, check the Manual radio button. Then set texture level to High. Then you should have your cars the way you want. What Graphics Adapter do you have?
Secondly, the 2007 beta mod is just as brilliant as the 2006 version in my view. OK you don't have all the track-specific cars, but it's very playable.