It works! Finally! DOSBox 0.70
But to run it seamlessly at SVGA and full details it is very hardware consuming...

Used system to test settings on:
AMD Athlon 64 4000+ (Single Core)
RAM: 2 Gigabyte (DDR400)
Graphic Cards: 2x nVidia GeForce 7300 GS (SLI activated)
OS: Windows XP Home Edition SP2

fatal.exe (DON'T use fat3d.exe, it WILL lag)
All background programs (except system ones) closed

DOSBox settings:
CPU Cycles (automatic cpu) 🙄:
96000 (Little image lag, seamless sound)
108000 ((almost) seamless image and sound)
120000 (no image lag at all, laggy sound)
Virtual Memory: 16 Megabyte
priority: highest, highest
graphic: vga
sound: sb16
sound block size: 1024
sound buffer time: 5ms

Fatal Racing settings:
Resolution: SVGA
Graphic Everyting activated, unrestricted view
Sound and Midi to SB16

I guess why it was so hard to run:
It renders every image and the entire racing progress with each cpu cycle in realtime; Setting it to a very high cpu cycle rate allows a faster refresh and thus a laglesser game.