The Force India car in the attached video was clearly in the wrong. Penalty is legit.
Going by the FIA rules, a car can only make one blocking motion. The Force India car clearly, made one move to the right to block, then moved back slightly to the left and moved back again to the right for a 2nd block.
Also when the passing car's front wheels are up to the middle of the Force India's car, you have to leave room for it. You cannot close the door on it creating a dangerous situation.
Because the above infringements caused an accident, the penalty is legit.
As for Blue flag penalties, A driver may incur
penalties if they ignore three successive
blue flags.
So by the time you see a Blue led flash on the screen, it might have been your 3rd blue flag. You need to go by the blue flags the marshalls wave at the trackside.
A single yellow indicates danger ahead, such as debris from a crash. Drivers must slow down as they pass; no
overtaking is permitted, unless it is unavoidable such as a driver retiring in the section, or a driver is lapped.
If you get a Blue flag during a Yellow flag situation, you are being lapped. It's different to overtaking.
Overtaking assumes you are fighting for position.
So if you are so slow to the point that the race leaders are lapping you , YOU have to give way even under a Yellow flag.
However, the car directly behind you (in track position) cannot overtake under Yellow flag situation.
That is, if you are in 16th position, and you get a Yellow followed by a Blue, you have to let race leaders between position 1 and 15 pass, but the car in positions 17 up CANNOT pass under a Yellow Flag.
Learn the F1 rules this game is built upon and stop complaining.
Now as for the 10 position penalty, I'm not saying there isn't a bug, but maybe it's the notification of an infringement to the rules, that is broken in the game.
Under FIA rules, a penalty may be imposed for more severe infractions: adding ten places to the driver's grid position at the next grand prix, e.g. if he qualified in
pole position he would start the race eleventh from the front.
But note "For more serious rule-breakages, an even more extreme penalty may be imposed but AFTER the race."
Maybe this is what is happening, but you are not being told about it properly by this game. So look back to your last Race or Quali or Practice, did you break any of the FIA rules?
Go check out
http://en.wikipedia.org/wiki/Formula_One_regulations for a quick summary of the FIA rules governing this sport.
Check out
http://www.f1rules.com/ for a more in depth and detailed representation of the rules.
http://www.formula1.com/inside_f1/rules_and_regulations/ is good too with a summary and an in depth section of the rules.