Remedy recently released a refurbished version of Death Rally, that now works with XP, Vista and Windows 7 - that best part of it is that it's freeware. At a tiny download size of 42 MB, it works quite well here on Windows 7 64bit and i have had some fun playing it -- this is coming from a guy that does not play many car related games.

Link: http://www.remedygames.com/games/death_rally.html

Edit: i managed to clock it. :-)