An instant classic!
There aren't a huge selection of cars to choose from (only 12) but the cars it does have (like the Impreza and Lancer) are instantly recognizable. They're laser modeled and look great. But more importantly they handle great on the games 52 rally stages to blast through.
The damage to the cars isn't very realistic. They only get slightly dented and the lights get put out and the windows cracked. Thats about it. But when you get good at the game (which doesn't take long) you shouldn't be crashing much anyway.
In terms of graphics the game looks good for a PS1 game. It's a bit rough round the edges but that adds to the realism of the rally driving. It's better than looking all shiny and artificial.
The sound elements are fantastic. All the cars sound different and you get some great surface noises from the roads and cool tire screeches.
It's a fun game to play and I think has a high replay factor because of all the stages and different cars which lets you experiment and improve your stage times to your hearts content.
Great game. :)