I was able to get LEGO Racers to run nearly flawlessly with the following steps. Unfortunately I can not remember the order that I did them in:
-IMPORTANT: LEGO Racers will not run unless you have a version of the game without SafeDisc. Later releases (such as those included in packs with other games) generally will run disc free.
-Install in a Windows 98 Bottle
-Install DirectX 6 (included on disc)
-Install Windows Media Player 6.4
-Run in a virtual desktop with the screen resolution set to 640X480
The only big problem is that the game will think that you have a low-end graphics card and will lower the graphics settings to make everything more blocky.