Specifically those of you with racing setups - this is something I want to get in to. I actually have room to set up a seat with a wheel and pedals and, once past the initial investment, it seems like an inexpensive way to really enjoy myself in the evenings.

So, basically, where do I start?

I have an xbox 360 and Fourza, but racing with a controller has always felt wrong. That said, it seems that the best options for wheels/shifters/pedals are for PC stuff. I’m capable of gaming with my computer, but have no idea what software can even come close to Forza in realism. I’m also hesitant to buy something for the 360 since I’ll probably eventually end up with an xbox one and Forza5/6.

So, in short:

For someone looking to set up a racing, err, setup (I don’t want to call it a sim because that makes it sound way more involved) and willing to spend a few hundred bucks on equipment, software, and eventually a cool seat from a junkyard (lets cap it at $500, and I already have a decent PC and an xbox360) - what would you suggest?