I was concerned about the lap bit of it too, but when I got it home it worked just fine on my lap. You don't expect it to, but, IMHO, it works fine.
Already got PGR3? Ebay the old copy or PX it
I will say that for some challenges you do feel that you need a precise, rock-steady mount for it, like tackling "the road is mine" race in TDU, where the slightest incorrect twitch and the car's off the road and the race lost.
I'm not sure if that's just because the wheel is really, really badly done in TDU. PGR3 is much better, so much so that my lap times pretty much started tumbling everywhere when I got used to the wheel.
If you need a mount for it, there are several options.
1) the full on bucket-seat-and-pedals.
Not an option for most, but I'd really like one...one day maybe..
2) Coffee table
This might need some evaluation to get one at the right height - take the wheel with you when you go to DFS/Ikea
3) Ironing board
Laugh as much as you like, but when you get forza2 and are trying to beat that lap time, that ironing board is coming out because you've read about mounting the wheel on one here and you wonder, just wonder, maybe, it's crazy..but..could it work? Wait till the missus is out and give it a go. You know she'll only laugh, but if it saves you a second and a half a lap.. well, let her laugh
Edit: Everyone that's given it a go loved it. One person even left my house and went and bought a 360 and wheel straight after playing with it round mine. I will admit that I'm a tad excited about Forza and CM DIRT - the wheel is going to get a lot of use.
The SIM fans (GTR and GrandPrix legends crowd) on the forums think that the wheels not quite as good as some logitech PC wheel, but having owned FF wheels in the past myself, I'm really happy with this one.
If I was in two minds, I'd wait until FM2 and CM Dirt come out, then definitely buy the wheel as well as those games. You won't regret it.