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ENABLING FULLSCREEN MODE - MANUALLY
Exit Racer and open racer.ini. Find the 'resolution' part. Here you will see the width & height of your window. Make sure this is supported by your monitor (these days, monitors will just display some message like 'frequency unsupported' if it cannot display your selected resolution).
Then set resolution.fullscreen to 1 and run Racer again. This should start in fullscreen mode.
Many ATI drivers and/or cards seem to give trouble. A possible (although strange) fix is said to be:
(last updated November 13, 2012 )