I'm in Las Vegas NV USA , also known as sin city. No you would think things are quite liberal here but actually it is quite the opposite . We are a conservative rural state. I too incured the wrath of the local police. I was driving down the road breaking in the GX motor and well the numbers and roll cage were to much for a police woman and she had to pull us over and hassle us.
Now with that said I do not test on the road. I do drive spirted (about 40%) but nothing that could land me in jail or risk other folks on the road.
As far as making your car competitive well most newbies couldn't win regardless of the car - has to do with track time not talent.When I took my 1200 to Drivers School I had $1800 U.S. in it , doesn't get much cheaper. Now mind you it had a bone stock engine and I battled for last place on race day but it was fun.
Poeple always say I'd like to go race but I couldn't in a car that slow. Well I tell them my motto about running slow cars "it's faster than a set of bleachers"
Now of course my mind set is differant - when I road raced bikes I ran the 125 GP class which is not exactly popular in the states so I learned to ignore what people think.
Any race car is still way more fun then you could ever have driving on the street , so just get your car race legal then worry about it being competitive later!!

Tom Grossmann
PS we call the car the Pokey , due to it's accelration and it being the same color as Gumby's side kick