GT4 Preload?

I'm fairly new to setting up cars and like that the GT4 cars have limited setup options. I'm curious as to what the preload setting does. I found on the X-bow at 6 (the default) I find the car to tight with a severe tendency to understeer. I decided to drop it to 1 and the car feels a bit twitchier but turns in perfectly and I can keep more speed. What exactly does the preload setting do exactly?
 
The preload defines the base amount of diff lock that is applied when you are in transition from coast to power(or the other way).
So with low preload the diff will not be locked in this transition phase and with higher preload there will allways be some locking.
 
Basically, you want to use high preload in fast tracks with more fast corners than slow ones
and low preload on tracks with lots of slow corners.
The benefit of higher preload is better traction on acceleration - reducing inside wheel over-rotate which means loosing grip, and under braking by reducing tendency of locking one of the wheels because of difference in load (between the two wheels on the drive axle).

The downside is understeer in low speed corners. In those corners the speed difference between the left and right wheel is greater but the diff high preload is resisting this speed difference therefore resisting the car from turning.
 

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