For taking photos at the racing you will want quite a large zoom, the 10x zoom in this will be quite good for that although you wont be able to use a continuous autofocus on the cars as the focusing system wouldnt be quick enough (even on expensive dSLR's you would need to look at top spec equipment to be able to fully track a car).
Looking at the specs of that camera it looks fairly good as a consumer level camera and should do an ok job at what you want it too.
I've always quite liked the canon ixus series of cameras they have always seemed pretty good, and there is always glowing reviews on the canon G7 although they are a bit higher up on the price scale.
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