Managed to get Wasteland Racers 2071 working. To get the game working you need to edit both GameSettings.txt and inputs.xml
ArcadeSettings.txt:
change MotionEnabled from 0 to 1
inputs.xml:
change <integer name="UseForceFeedbackWheel" value="0"/> to <integer name="UseForceFeedbackWheel" value="1"/>
Since the game originally ran on Windows XP, you will need to run the game (Arcade.exe) as administrator.
If you are using Windows 8 or newer (most of you will probably run either Windows 10 or 11), you will need to install the DirectPlay feature to get the game working.
To get beyond the "Finding Server" screen you need a working internet connection and make sure you don't set the compatibility mode to Windows XP/7/8, otherwise it will stuck on that screen.
If your computer doesn't have working internet connection, install Microsoft Loopback Adapter so you will have a working virtual internet connection and get the game to go past the "Finding Server" screen.
VirtNet (https://www.ntkernel.com/virtnet/) is also a good alternative of Microsoft Loopback Adapter.
Here's a video on installing Loopback adapter in newer versions of Windows:
Change your resolution to your liking in the D3DLocalConfigData.txt.
Tested both on Windows XP (SP3) and Windows 11 (22000.318) and it works fine.