Hello, I am using the controller and am getting pretty good at using it for Forza 2, but would love a wheel instead. Is it better? Does it work well/better than the contoller? Any disadvantages?

Better is a very subjective word.

It's more fun, at least for me and everyone who tried it at my place. That's what convinced me to switch but I switched a long time ago.

Disadvantages? Not sure... here is what I think:
1. If the wheel is plugged in _and_ has batteries it sometimes pauses the game without you pressing the start button, mildly annoying in free run if you're on your fast lap but devastating if you're racing online.
Solution: remove the battery if the wheel is plugged in, no idea why it works but it seems to.
Caveat: this may have been fixed already with newer wheels, mine is old.

2. It's more physical, can be either an advantage or a disadvantage. It certainly makes the experience much more engaging, you'll find yourself leaning in your seat in the corners for no good reason. It also feels better and I personally think that learning to feel the car with the wheel helped my real life autocrossing.
On the other hand, it can be a con if you're feeling lazy and just want to bang away at buttons in your recliner. I just don't play Forza when I feel so.

3. It'll take you some time to get to the same level of skill you're at with a gamepad, but it goes both ways. It's just about what you've spent time getting used to. Unlearning your gamepad habits can be hard, but it's fun.

All that said, I've been playing Forza with the wheel exclusively for a year and half or so. Wouldn't do it any other way.

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R.I.P. PaleRider

Personal opinions above are just that, personal.

There are a few other threads around here which asked roughly the same question, so you might use Search at the top of the forum to see what's been said before.

Now, my simple answer (supplied by my Wife, actually) - You don't use a controller to drive your car, so why would you use anything other than a wheel to play the best racing game on Xbox 360?  It makes Forza Motorsport 2 more entertaining, more "real" and a lot more fun to play.  Besides, with a wheel, you can scratch your nose, adjust your glasses if you wear glasses, and even take a quick sip of coffee or a cold drink on a long straight. 

As you'll read in the other threads you find with Search, there is a learning curve.  The wheel takes time to get used to, but once you get it you'll really have fun.

Oh, and while you're at it (even before you get your wheel if you figure out you'll enjoy it), take a look at Turn 10's Tactile Training Guide where suggestions on both the controller and wireless wheel settings are made. They're quite helpful, and will give you a solid base from which you may need only to make some minior adjustments for "your" style.

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Pay It Forward
Microsoft Tablet PC MVP - Forums Moderator
This posting is provided as is; with no warranties, and confers no rights.

I agree with these guys, the wheel is just more fun. I still think it's hard to be faster than the controller because you can't switch from steering right to steering left like you can with the controller. On the other hand, your inputs are smoother with the wheel so your time won't be spent always doing the left right left right thing like with the controller. You can find the limits of the cars easier with the wheel, and the same goes for gas and brake if you are not using assists.

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-Turns
GT: Turns
Visit Turns' Garage!

yeah i have recently got the wheel  too. the force feedback and rumble when you power slide or drift is brilliant! you feel every bump in the road

make sure you set up the deadzones and sensitivity setup first to your own taste as at first it may be too sensitive and you'll end up all over the road.

 i recently started to practise all assists off and the wheel is excellent for that too - feathering the brakes slightly and gears too work well.

if i'm tired i usually do still use the controller so i can get extra laps in before i fall asleep

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coming soon to the AH.....