I noticed this on all the races in FGT, at Fuji after being spun at the first corner I started to catch the leader by around 3 secs per lap and after I overtook him I was pretty consistently lapping within a few tenths of a second per lap with the occasional faster lap and the 2nd position AI would not dissapear more than 5 seconds away even though I cought him at 3 secs per lap and started to get quicker so I should really have been leaving him behind at 3+ secs per lap.

It stinks of the catch up system implemented in the NFS games.

The F1 racing of older GT's was one of the better races, especially having pit stops too, what happened to them?
97 Laps of Route 246 f t w. The F1 event in GT4 was how extreme events SHOULD be. Utterly knackering because of the length (though with B-spec integrated with A-spec you could pit in for a driver change which was awesome, unlike the crappy system in 5), no clear cut winners because everyone was in the same car and the AI didn't seem to cheat too heavily, just overall a really enjoyable (and occasionally massively frustrating lol) race
I also believe there is a catchup system in place, I noticed this in the 1st Like The Wind race, I was in the lead by 5 seconds after a few messy laps, the next two laps were a few seconds better and the 2nd car was still 5 seconds behind me.
Responding to both quotes here on the catchup system, it's definitely there, no doubt about that. I was doing the historic event last night to get the Dream Race trophy, so I was using the XJ13 as it's the best of those three race cars. I was leading happily by between 1-3 seconds per lap until literally the last 5 or so corners of the final lap.
Then, SUDDENLY, a Toyota 7 is in my rear view mirror getting larger FAST. I actually had to block him on the final straight to avoid losing first. If he could catch up that quickly on the final few corners WHERE WAS HE THE REST OF THE TIME? Really hate cheating AI in any game but especially racing games, and especially in this day and age where that sort of thing shouldn't even be necessary any more.
Do you like a challenge? If so its possible, but will probably be the hardest race you've done thus far, even with a fully nodded Countach. I thought it was great fun
I tried this precisely once. Most frustrating experience ever lol I've done it in the XJ13 now (see above) but when I first completed the event it was in the Toyota 7.
edit:
Try quitting the game and starting it again, that usually does the job
No need to quit the game to get a new friend to appear in the list, just exit to the main menu where you choose GT Life, Arcade, etc. then enter back into the game and they'll be in the list.
Random aside: Could someone tell me why the acronym f t w (when done without spaces) is filtered? It's not like it's a swear or anything, unless there's another acronym I don't know about. Better than Sony's filtering though I guess, where you can't even type the word 'filtering' because apparently 'tering' is a foreign swearword and is therefore censored lol