That is correct 99.9% of the time. But in my case it's not quite correct. My display mode is 800x600@50i. This is because i'm using older 15kHz SD PVM's as arcade monitors for my driving setups. This mode will be seen as 50Hz by Windows. In this case, the settings are 0=vsync (at 50Hz, or 5/6 speed), 1=50Hz (again at 5/6 speed. It won't go above the refresh rate, must be coded that way. And setting windowed mode in the ini makes no difference), 2=30Hz (1/2 speed). I needed a way to truly unlock v-sync. Having tried multiple methods with no success, SpecialK did the trick, as described above. Using that you can unlock v-sync and then limit the frames to whatever you like, 60 being sensible
I could of course use a 640x480@60i mode and get 60Hz that way, but the game was designed for 1080p, and while it still looks fantastic at 800x600, using 640x480 is too low-resolution - everything works fine, and you don't strictly need to read the fine print, but while actually driving you start to have trouble seeing upcoming track detail, corners, crests, etc.