Depends what sort of look I'm after. Lately, I've liked using a really wide angle lens like this at 17mm..........
The bike is literally 4 feet from the lens, but I don't have my eye up to the camera, I just hold it outstretched in my hand and wave it in the general direction of the bike.
But you've got to be prepared to be roosted with this technique. Plus I only ever get that close during practice rather than piss someone off during a race or risk getting hit. That's the beauty of digital too, you can have a go at weird stuff and if it doesn't work, you can see instantly why and work out what to do to fix it.
Or if you use a long lens, like this one at 300mm, it kind of compresses everything and the background looks closer than it really is.
I like both extremes.
As for image setting, if your camera does it and you've got the software to process them, then shooting in RAW mode gives the best quality and more options for making adjustments afterwards. It slows the camera down and it takes more time on the computer too, but the results are definitely better. Otherwise, use the highest quality Jpeg.
Cheers
TT